TheDevelopmentAdvisor: Asia Coastal Destination Developmenthttp://thedevelopmentadvisor.comNews & Perspectives on Coastal Tourism, Land and Resort Development in Asia.en-USMon, 08 May 2017 20:37:00 PDThttp://wordpress.org/?v=4.0.22hourly1http://creativecommons.org/licenses/by-nc-nd/3.0/http://creativecommons.org/licenses/by-nc-nd/3.0/http://creativecommons.org/images/public/somerights20.gifSome Rights Reservedthedevelopmentadvisorhttps://feedburner.google.comSubscribe with My Yahoo!Subscribe with NewsGatorSubscribe with My AOLSubscribe with BloglinesSubscribe with NetvibesSubscribe with GoogleSubscribe with PageflakesSubscribe with PlusmoSubscribe with The Free DictionarySubscribe with Bitty BrowserSubscribe with Live.comSubscribe with Excite MIXSubscribe with WebwagSubscribe with Podcast ReadySubscribe with WikioSubscribe with Daily RotationThanks for subscribing to TheDevelopmentAdvisor ! Vietnam: The Cost of the East Sea Quarrel to the Hospitality Industryhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/5LiHa8aHLVg/Tourism DevelopmentFeaturedAsia CoastalSat, 01 Nov 2014 22:36:44 PDThttp://thedevelopmentadvisor.com/?p=18560Mark Gwyther from MGT Management Consulting in Vietnam contributed this post.

I’ve been asked several times just how badly Vietnam’s hospitality business was affected by problems resulting from the East Sea dispute with China. From the investor’s point of view, it is much worse than most people realize. Back in April (the anti-Chinese riots occurred mid-May) Vietnam’s inbound international arrivals were up 27% for the year compared to the previous year. This was buoyed by a 47% increase in Chinese visitors. In our January newsletter, my firm predicted 8.9 million foreign arrivals in 2014 (18% growth) and by April it had looked like we might be slightly low. Others such as the CEO of Indochina Land, were saying “Right now we’re at an inflection point with supply and demand. But I see demand outstripping supply within the next 12 months.”[1].

Vietnam hospitality was poised to have a huge year.

First Impressions

At first it did not look so bad. When the tourism numbers came out at the end of May the Vietnamese media reported the East Sea dispute was not having much of an impact since the number of Chinese arrivals was still up 30% for the month compared to the year before. But in the first half of May, before the troubles began, Chinese arrivals were likely up more than 50% compared to the first half of May 2013. So the effect in the 2nd half of the month was actually very significant.

Another factor leading to a lack of understanding of the impact was how VNAT reports statistics. Monthly international inbound numbers are released around the 25th of the month-meaning they estimate the final few days. VNAT most likely uses the growth rate of the first 25 days of the month and applies it to the final few days. This method becomes very inaccurate when a mid-month event changes everything. Applying a 30% growth rate to the final five days of the month would add a significant amount of inbound arrivals compared to a 30% decline.

The Actual Cost

As the summer wore on it became very apparent to everyone that the East Sea dispute had significant implications for tourism. The cumulative growth rate versus the previous year steadily dropped from 27% in April to 10% by the end of September. Still, most media didn’t recognize or didn’t report the real damage of opportunity costs.

In 2013, more than a quarter of all international visitors to Vietnam were Chinese. The Chinese market is bigger than the next three countries combined. Of course many of those visits are cross-border trading, but that proportion of cross-border traders is decreasing as a percentage of the total number of Chinese visitors- indicating a shift to more traditional tourism. That’s hardly surprising as most countries throughout the world are experience large growth in the number of Chinese inbounds.

Chinese Arrivals to Vietnam

Almost as importantly, this rate has been increasing over time, signifying exponential growth. The trend line for monthly growth rates from January 2013 to April 2014 shows an average monthly increase in the rate of growth of about 1.5%.

Monthly Increase in Chinese Tourism Growth

January & February always have large spikes due to the Tet Holiday moving.

When estimating how many tourists Vietnam lost, we must forecast the regular growth plus the additional amount from increasing growth rates. For the first four months of 2014, Chinese increased 48% from the previous year. This growth rate was accelerating at about 1.5% per month, which means if we had forecasted Chinese arrivals back in April, we’d have come up with this prediction.

May 14

June 14

July 14

Aug 14

Sep 14

4 Month Total

2013 Chinese Visitors

148,606

129,577

173,257

190,358

169,682

811,480

Expected Growth (48%)

71,331

62,197

83,163

91,372

81,447

389,510

Accelerated Growth

2,330

3,887

7,796

11,421

12,726

38,160

Expected Total

222,267

195,661

264217

293151

263,856

1,200,990

Actual Total

194,018

136,726

123,442

135,170

148,895

738,251

Difference

28,249

58,925

140,775

157,981

114,961

462,739

That’s over 450,000 visitors that should have arrived but didn’t. If the average stay is over 4 nights with double occupancy, we are discussing a million room nights lost in four months. Developers and investors were anticipating growth in the Chinese outbound market and instead it suddenly shrunk dramatically.

What’s Next?

This is not the first time the Chinese Government has used its outbound tourists as an economic weapon against another country. In May 2012, they advised travel agencies (many which are state-owned) to cancel tours to The Philippines because of protests at the Chinese embassy in Manila. They lifted the ban several months later and Chinese arrivals to The Philippines increased by 70% in 2013[2]. That would seem to indicate the Chinese travelers will come back rapidly once relations begin to normalize.

]]>Mark Gwyther from MGT Management Consulting in Vietnam contributed this post. I’ve been asked several times just how badly Vietnam’s hospitality business was affected by problems resulting from the East Sea dispute with China. From the investor’s point of view, it is much worse than most people realize. Back in April (the anti-Chinese riots occurred mid-May) Vietnam’s inbound international arrivals were up 27% for the year compared to the previous year. This was buoyed by a 47% increase in Chinese visitors. In our January newsletter, my firm predicted 8.9 million foreign arrivals in 2014 (18% growth) and by April it had looked like we might be slightly low. Others such as the CEO of Indochina Land, were saying “Right now we’re at an inflection point with supply and demand. But I see demand outstripping supply within the next 12 months.”[1]. Vietnam hospitality was poised to have a huge year. &#160; First Impressions At first it did not look so bad. When the tourism numbers came out at the end of May the Vietnamese media reported the East Sea dispute was not having much of an impact since the number of Chinese arrivals was still up 30% for the month compared to the year before. But in the first half of May, before the troubles began, Chinese arrivals were likely up more than 50% compared to the first half of May 2013. So the effect in the 2nd half of the month was actually very significant. Growth of Chinese Inbound Arrivals (vs. Previous Year) &#8211; Jan 2012 to April 2014 Another factor leading to a lack of understanding of the impact was how VNAT reports statistics. Monthly international inbound numbers are released around the 25th of the month-meaning they estimate the final few days. VNAT most likely uses the growth rate of the first 25 days of the month and applies it to the final few days. This method becomes very inaccurate when a mid-month event changes everything. Applying a 30% growth rate to the final five days of the month would add a significant amount of inbound arrivals compared to a 30% decline. &#160; The Actual Cost As the summer wore on it became very apparent to everyone that the East Sea dispute had significant implications for tourism. The cumulative growth rate versus the previous year steadily dropped from 27% in April to 10% by the end of September. Still, most media didn’t recognize or didn’t report the real damage of opportunity costs. In 2013, more than a quarter of all international visitors to Vietnam were Chinese. The Chinese market is bigger than the next three countries combined. Of course many of those visits are cross-border trading, but that proportion of cross-border traders is decreasing as a percentage of the total number of Chinese visitors- indicating a shift to more traditional tourism. That’s hardly surprising as most countries throughout the world are experience large growth in the number of Chinese inbounds. &#160; Chinese Arrivals to Vietnam Almost as importantly, this rate has been increasing over time, signifying exponential growth. The trend line for monthly growth rates from January 2013 to April 2014 shows an average monthly increase in the rate of growth of about 1.5%. &#160; Monthly Increase in Chinese Tourism Growth January &#38; February always have large spikes due to the Tet Holiday moving. When estimating how many tourists Vietnam lost, we must forecast the regular growth plus the additional amount from increasing growth rates. For the first four months of 2014, Chinese increased 48% from the previous year. This growth rate was accelerating at about 1.5% per month, which means if we had forecasted Chinese arrivals back in April, we’d have come up with this prediction. May 14 June 14 July 14 Aug 14 Sep 14 4 Month Total 2013 Chinese Visitors 148,606 129,577 173,257 190,358 169,682 811,480 Expected Growth (48%) 71,331 62,197 83,163 91,372 81,447 389,510 Accelerated Growth 2,330 3,887 7,796 11,421 12,726 38,160 Expected Total 222,267 195,661 264217 293151 263,856 1,200,990 Actual Total 194,018 136,726 123,442 135,170 148,895 738,251 Difference 28,249 58,925 140,775 157,981 114,961 462,739 That’s over 450,000 visitors that should have arrived but didn’t. If the average stay is over 4 nights with double occupancy, we are discussing a million room nights lost in four months. Developers and investors were anticipating growth in the Chinese outbound market and instead it suddenly shrunk dramatically. &#160; What’s Next? This is not the first time the Chinese Government has used its outbound tourists as an economic weapon against another country. In May 2012, they advised travel agencies (many which are state-owned) to cancel tours to The Philippines because of protests at the Chinese embassy in Manila. They lifted the ban several months later and Chinese arrivals to The Philippines increased by 70% in 2013[2]. That would seem to indicate the Chinese travelers will come back rapidly once relations begin to normalize. &#160; [1] http://thedevelopmentadvisor.com/news/vietnam-danang-resort-villa-condominium-market/ [2] The Chinese government re-instated its travel warnings to The Philippines last month. &#160; You just finished reading Vietnam: The Cost of the East Sea Quarrel to the Hospitality Industry! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=18560">Vietnam: The Cost of the East Sea Quarrel to the Hospitality Industry</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/vietnam-cost-east-sea-quarrel-hospitality-industry/feed/0http://thedevelopmentadvisor.com/vietnam-cost-east-sea-quarrel-hospitality-industry/Phuket: AMCHAM’s forum suggest rethink of destination developmenthttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/A92Zx1LznRQ/Tourism DevelopmentFeaturedAsia CoastalSun, 19 Oct 2014 21:00:38 PDThttp://thedevelopmentadvisor.com/?p=18543Wichit Na Ranong. Image by: The Phuket News

The Phuket News has some very relevant views on destination development from people on the ground. Full text reproduced here :-

What began as a discussion, arranged by the Phuket chapter of the American Chamber of Commerce, about Phuket’s identity, and the way the island should be branded to ensure that tourist numbers continue to rise, took an abrupt turn.

As David Keen of branding company Quo gave examples of how New Zealand had boosted numbers with its “Pure” campaign, or how Yorkshire had done the same with its “Have a brilliant Yorkshire”, there were mutters all around the room, filled with around 200 people, about whether Phuket needs any more tourists or, indeed, can stand any more.

On the stage, the father of Phuket tourism, Wichit Na Ranong, explained how, decades ago, he and others had formulated a plan for the government to guide Phuket’s tourism development.

It was accepted and although Thai Airways started flying regularly to the island, there was no budget for most of the rest of the plan, so it didn’t happen.

Alongside him, Daniel Meury of Andara commented, “Phuket is paying the price for its success.” Anthony Lark of Montara, agreed. “Phuket used to be beaches and Thainess. Market forces have driven development in an uncontrolled way. Perceptions of Phuket are mixed. There are many negative opinions.”

In the audience, Wolfgang Meusburger who includes in his portfolio the Holiday Inn in Patong, said,

“It’s a classic case of things going bad when there is no control and everyone does whatever they want.”

Mr Keen, always nimble on his feet, swerved away from his numbers but argued that Phuket still needs to define itself. Without definition there would be no pride and no direction. He even offered to work on Phuket’s brand pro-bono.

He challenged anyone in the audience to sum the island up in a word or phrase. There were no takers.

So Mr Keen called for hands from those who would join an über-committee – a Tourism Council of Phuket, perhaps – to include the various chambers, associations, clubs and stakeholder organisations on the island that are already involved in steering things, often in conflicting directions. Perhaps 25 hands went up.

Russell Russell spoke for many when he said, “There really is no one in this room who can drive forward the changes needed in infrastructure and branding. We can talk about it but we can’t drive it.”

But Mr Wichit disagreed that it was time for the government, or some form of authority, to take a grip and make a plan.

“No, not top-down,” he said. “No one is better than the people sitting here and the stakeholders to create the plan.”

Presenting the plan to government, in a way that it would be accepted and supported, is an art, he explained. “You have to cook the food and then chew it for them. Then you can take it to a higher level [so they can digest it easily].”

He added, “Any children who stay quiet get forgotten. So you have to demand.” But who would do this cooking, chewing and demanding? Michael Ayling, new boss of Royal Phuket Marina, agreed that it was “now the time to come together”.

“Phuket is developing as a mass tourism destination,” he said, causing shudders around the room, “and we have to adapt to that.” He suggested that the major developers should take the lead.

Mr Lark – who could never be accused of catering to mass tourism – said that, instead, “Phuket needs breathing space to slow down, to fix the garbage, infrastructure and development.”

Mr Wichit came back to his argument that people need to come together to define Phuket and devise a coherent way forward. The page could not be wiped clean, he said. “We have to paint a picture on a cloudy sheet. But better that than no painting at all.”

He added, “We have to be ready for some pain.”

There was surprisingly little dissent in the room. All appeared to agree that Phuket is in a mess, that everyone is pursuing his or her own interests without regard to their effect on others, that the authorities are reactive rather than proactive, and that the island is sorely in need of a plan.

All the participants went away with plenty to think about. Whether the discussion will result in people actually coming together to give Phuket direction remains to be seen.

]]>The Phuket News has some very relevant views on destination development from people on the ground.<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=18543">Phuket: AMCHAM's forum suggest rethink of destination development</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/phuket-amcham-destination-development/feed/0http://thedevelopmentadvisor.com/phuket-amcham-destination-development/Bangladesh: Government plans coastal tourism zone at Cox’s Bazarhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/2m2T1iMknl0/Tourism DevelopmentFeaturedAsia CoastalSat, 04 Oct 2014 19:00:32 PDThttp://thedevelopmentadvisor.com/?p=18501Bangladesh is not a country one associates with international coastal tourism. But things may be about to change. Located along the same coastline as Myanmar’s Ngapali beach, Cox’s Bazar is a seaside town and one of the most popular local tourist destinations in Bangladesh. It’s 120 kilometer coastline is also one of the longest uninterrupted beaches in the world. The government has plans for a 1165 acre coastal tourism zone and actively seeking investors and developers.

The government is moving ahead with establishing an exclusive tourist zone (ETZ) at Sabrung of Teknaf in Cox’s Bazar having modern facilities to rope in international tourists.

Economic gains for the investors and providing attractive entertainment for business entrepreneurs from home and abroad through the ETZ, being built under public-private partnership (PPP), are among the key objectives, officials and industry-insiders say.

The dos include upgrading Cox’s Bazar airport to an international one, completing the four-lane marine drive and ensuring electricity supply to the multimillion-dollar project.

He said a high-powered delegation headed by the tourism minister will go to Japan in search of Japanese investors.

Mr Khan observed many foreign investors who have invested in garment and manufacturing sectors are confident about the sectors. But tourism has not yet flourished as organised sector in Bangladesh for which foreign investors are not yet confident to make investment here.

“I hope within next one or two years, the tourism sector will create that confidence among the foreign investors as the government will develop necessary infrastructures and policy supports for the investors,” he added.

With Bangladesh’s growing interaction with Northeast and Eastern India, Myanmar, Nepal and Bhutan and deepening regional and sub-regional connectivity–and absence of such an ETZ in this sub-region–the proposed project is expected to draw a sizable crowd from the region as well.

Besides, the proposed Sabrung ETZ on the world’s longest unbroken sea beach eventually may be one of the single-largest and spectacular ETZ in the world with the facilities in place.

It would contribute to deepening regionalism in South Asia and opening of the region with Bangladesh and a recognized production-distribution-logistic hub connecting to South and Southeast Asia and beyond, experts say.

The planned ETZ enjoys support of the Prime Minister as part of the government’s pledge to comprehensively develop tourism in Cox’s Bazar under the ‘Establishment of Exclusive Tourist Zone at Sabrung, Cox’s Bazar,’ project.

Around 1165 acres of land has been earmarked and a feasibility study has already been initiated by the PPP office under PMO.

Deputy Manager (Planning) of Bangladesh Parjatan Corporation (BPC) Ziaul Haque Howlader said strategically Sabrung is located at such a place where the investors will be economically benefited.

Because, he explained, the Asian Highway will connect Myanmar through Teknaf. Besides, the Cox’s Bazar airport will be upgraded as an international one with the financial assistance from China.

He said there is a lucrative opportunity for international sea cruise covering Thailand, Malaysia and Singapore. Also there is scope for developing international-standard water-based recreational and sports facilities.

“Moreover this ETZ will attract visitors from neighbouring landlocked areas like Myanmar, Bhutan, Nepal and Southeast China because of the connectivity,” Mr Haque added.

]]>Bangladesh is not a country one associates with international coastal tourism. But things may be about to change. Located along the same coastline as Myanmar&#8217;s Ngapali beach, Cox&#8217;s Bazar is a seaside town and one of the most popular local tourist destinations in Bangladesh. It&#8217;s 120 kilometer coastline is also one of the longest uninterrupted beaches in the world. The government has plans for a 1165 acre coastal tourism zone and actively seeking investors and developers. The government is moving ahead with establishing an exclusive tourist zone (ETZ) at Sabrung of Teknaf in Cox&#8217;s Bazar having modern facilities to rope in international tourists. Economic gains for the investors and providing attractive entertainment for business entrepreneurs from home and abroad through the ETZ, being built under public-private partnership (PPP), are among the key objectives, officials and industry-insiders say. The dos include upgrading Cox&#8217;s Bazar airport to an international one, completing the four-lane marine drive and ensuring electricity supply to the multimillion-dollar project. He said a high-powered delegation headed by the tourism minister will go to Japan in search of Japanese investors. Mr Khan observed many foreign investors who have invested in garment and manufacturing sectors are confident about the sectors. But tourism has not yet flourished as organised sector in Bangladesh for which foreign investors are not yet confident to make investment here. &#8220;I hope within next one or two years, the tourism sector will create that confidence among the foreign investors as the government will develop necessary infrastructures and policy supports for the investors,&#8221; he added. With Bangladesh&#8217;s growing interaction with Northeast and Eastern India, Myanmar, Nepal and Bhutan and deepening regional and sub-regional connectivity&#8211;and absence of such an ETZ in this sub-region&#8211;the proposed project is expected to draw a sizable crowd from the region as well. Besides, the proposed Sabrung ETZ on the world&#8217;s longest unbroken sea beach eventually may be one of the single-largest and spectacular ETZ in the world with the facilities in place. It would contribute to deepening regionalism in South Asia and opening of the region with Bangladesh and a recognized production-distribution-logistic hub connecting to South and Southeast Asia and beyond, experts say. The planned ETZ enjoys support of the Prime Minister as part of the government&#8217;s pledge to comprehensively develop tourism in Cox&#8217;s Bazar under the &#8216;Establishment of Exclusive Tourist Zone at Sabrung, Cox&#8217;s Bazar,&#8217; project. Around 1165 acres of land has been earmarked and a feasibility study has already been initiated by the PPP office under PMO. Deputy Manager (Planning) of Bangladesh Parjatan Corporation (BPC) Ziaul Haque Howlader said strategically Sabrung is located at such a place where the investors will be economically benefited. Because, he explained, the Asian Highway will connect Myanmar through Teknaf. Besides, the Cox&#8217;s Bazar airport will be upgraded as an international one with the financial assistance from China. He said there is a lucrative opportunity for international sea cruise covering Thailand, Malaysia and Singapore. Also there is scope for developing international-standard water-based recreational and sports facilities. &#8220;Moreover this ETZ will attract visitors from neighbouring landlocked areas like Myanmar, Bhutan, Nepal and Southeast China because of the connectivity,&#8221; Mr Haque added. The proposed ETZ may offer facilities like star hotels, water villa/beach villa/cottage, food court, nightclub, health club, spa, art/craft gallery, helipad, car parking, cable car, walkway with umbrella and RCC bench, watch tower, water sports facilities, marine life aquarium, indoor/outdoor games, golf course, convention hall, business centre, cyclone shelter, lifeguard, tourist police camp, bar, auditorium, amusement park, jetty for water vessel, water vessel for sea cruising, banking facilities, landscaping, swimming pool and so. The Financial Express Image: Taofiq Ahmed Shahin, Hasin Hayder You just finished reading Bangladesh: Government plans coastal tourism zone at Cox's Bazar! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=18501">Bangladesh: Government plans coastal tourism zone at Cox's Bazar</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/bangladesh-sabrung-international-coastal-tourism-zone-cox-bazaar/feed/021.4394627 92.0077286http://thedevelopmentadvisor.com/bangladesh-sabrung-international-coastal-tourism-zone-cox-bazaar/We’re back with a new look!http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/PF6LAgft1Ac/GeneralAsia CoastalFri, 03 Oct 2014 18:00:44 PDThttp://thedevelopmentadvisor.com/?p=18522We have upgraded to a new web look! Check us out here.

While remaining at the same web address the site has been re-titled ‘Asia Coastal Tourism Destination Development’ to closer represent the topic covered.

Our apologies if you encountered ‘surprises’ in your email, RSS or twitter feed during the transition.

]]>We have upgraded to a new web look! Check us out here. While remaining at the same web address the site has been re-titled &#8216;Asia Coastal Tourism Destination Development&#8217; to closer represent the topic covered. Our apologies if you encountered &#8216;surprises&#8217; in your email, RSS or twitter feed during the transition. With best regards Asia Coastal You just finished reading We're back with a new look!! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=18522">We're back with a new look!</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/new-web-theme/feed/0http://thedevelopmentadvisor.com/new-web-theme/Asia coastal tourism development ‘Heat Map’http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/t-ZYTOPgp8M/Tourism DevelopmentFeaturedMapAsia CoastalSat, 05 Jul 2014 22:02:48 PDThttp://thedevelopmentadvisor.com/?p=18133

Since starting this website we have curated and collected geographical location of relevant news event related to coastal destination development in Asia. This news is broadly categorized in terms of tourism development and associated infrastructure development, resort development, environment management (or lack of) and cruise port development. We thought we’d share this with the coastal development community here.

Each point or icon in the map above represents a single news event. An icon with ‘+’ sign indicates multiple news events for a single location. It’s not a true heat map with ‘hot’ and ‘cold’ bands you are accustomed to. However, from the clustering of icons you get a sense of which destinations are making the news.

Some icons appear out-of-place. If a news or post has more than one icon the software algorithm consolidates multiple icons into one to show in the master map above. Click on one and you’ll know what I mean.

This is a ‘live’ map in that every future news item with a geographical location gets updated automatically onto the map.

]]>Since starting this website we have curated and collected geographical location of relevant news event related to coastal destination development in Asia. This news is broadly categorized in terms of tourism development and associated infrastructure development, resort development, environment management (or lack of) and cruise port development. We thought we&#8217;d share this with the coastal development community here. Each point or icon in the map above represents a single news event. An icon with &#8216;+&#8217; sign indicates multiple news events for a single location. It&#8217;s not a true heat map with &#8216;hot&#8217; and &#8216;cold&#8217; bands you are accustomed to. However, from the clustering of icons you get a sense of which destinations are making the news. Some icons appear out-of-place. If a news or post has more than one icon the software algorithm consolidates multiple icons into one to show in the master map above. Click on one and you&#8217;ll know what I mean. This is a &#8216;live&#8217; map in that every future news item with a geographical location gets updated automatically onto the map. &#160; You just finished reading Asia coastal tourism development 'Heat Map'! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=18133">Asia coastal tourism development 'Heat Map'</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/asia-coastal-tourism-development-heat-map/feed/0http://thedevelopmentadvisor.com/asia-coastal-tourism-development-heat-map/Philippines: Renewed interest in Puerto Azulhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/hwnmNqTeNqY/Resort DevelopmentAsia CoastalSat, 14 Jun 2014 01:26:05 PDThttp://thedevelopmentadvisor.com/?p=18057

The history of Puerto Azul in the Philippines reads like a much touted mega resort project out of the 1980s that never quite succeeded. At 3,300 hectares it’s almost three times the size of Mandalika in Lombok and about twice the size of Lagoi Bay in Bintan. ABS-CBN news has more background here. Things are about to change for this master planned coastal resort destination that’s only 50km from Manila.

In a disclosure to the Philippine Stock Exchange, Boulevard Holdings said Ayala Land Inc (ALI), SM Development Corp (SMDC) and a “significant quality developer around the Makati area” have expressed interest to develop parcels of land in Puerto Azul.

In a letter addressed to Boulevard Holdings chairman Jose Marcel Panlilio dated August 13, 2012, SMDC vice chairman Henry Sy Jr. said the company intends to pursue a possible joint venture for the development of the properties of Puerto Azul, subject to the due diligence and mutually acceptable sharing arrangement.

Boulevard Holdings said it has yet to process SMDC’s proposal. A representative of the SM group declined to comment on the possible tie-up.

“Because we are not much of a big organization we prefer to do a first in, first out processing of any partner/investor interest in BHI’s resort lands,” Boulevard Holdings said.

The listed firm said discussion with the Ayala group “is never a sure thing until signed.” In April, ALI agreed to acquire certain landholding assets of the Panlilio-led holding firm.

Boulevard Holdings had said the focus of its talks with Ayala Land Premier, the high-end unit of ALI, was for a parcel of land originally designated for a 300-key Fridays Beach Resort Hotel.

ALI president Antonino Aquino had said the property giant plans to build a leisure-oriented project in the property.

]]>The history of Puerto Azul in the Philippines reads like a much touted mega resort project out of the 1980s that never quite succeeded. At 3,300 hectares it&#8217;s almost three times the size of Mandalika in Lombok and about twice the size of Lagoi Bay in Bintan. ABS-CBN news has more background here. Things are about to change for this master planned coastal resort destination that&#8217;s only 50km from Manila. In a disclosure to the Philippine Stock Exchange, Boulevard Holdings said Ayala Land Inc (ALI), SM Development Corp (SMDC) and a &#8220;significant quality developer around the Makati area&#8221; have expressed interest to develop parcels of land in Puerto Azul. In a letter addressed to Boulevard Holdings chairman Jose Marcel Panlilio dated August 13, 2012, SMDC vice chairman Henry Sy Jr. said the company intends to pursue a possible joint venture for the development of the properties of Puerto Azul, subject to the due diligence and mutually acceptable sharing arrangement. Boulevard Holdings said it has yet to process SMDC&#8217;s proposal. A representative of the SM group declined to comment on the possible tie-up. &#8220;Because we are not much of a big organization we prefer to do a first in, first out processing of any partner/investor interest in BHI&#8217;s resort lands,&#8221; Boulevard Holdings said. The listed firm said discussion with the Ayala group &#8220;is never a sure thing until signed.&#8221; In April, ALI agreed to acquire certain landholding assets of the Panlilio-led holding firm. Boulevard Holdings had said the focus of its talks with Ayala Land Premier, the high-end unit of ALI, was for a parcel of land originally designated for a 300-key Fridays Beach Resort Hotel. ALI president Antonino Aquino had said the property giant plans to build a leisure-oriented project in the property. In 2011, Boulevard Holdings acquired Cala Paniman Inc, which owns the Cresta Grande subdivision, a 21-hectare sea view promontory parcel overlooking the China Sea and Corregidor Island. Cala will be used to develop, as co-master partner, the 3,000-hectare Puerto Azul complex in Cavite. Inter Aksyon Image: ABS CBN News You just finished reading Philippines: Renewed interest in Puerto Azul! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=18057">Philippines: Renewed interest in Puerto Azul</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/philippines-renewed-interest-puerto-azul/feed/014.2795830 120.6802673http://thedevelopmentadvisor.com/philippines-renewed-interest-puerto-azul/Mapping luxury hotel chain brands across Asian resort destinationshttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/aJR8rwc81TI/Resort DevelopmentFeaturedMapAsia CoastalSat, 31 May 2014 21:40:30 PDThttp://thedevelopmentadvisor.com/?p=16492

This map shows hotel chains with their luxury and upscale brands across Asian resort destinations. Global brands included are by Starwood, Marriott, Four Seasons, Intercontinental, Club Med, Hilton/Conrad, Hyatt, Accor. Regional brands included are by Aman, Shangri-la, Banyan Tree, Anantara, Centara, Alila, GHM. We will be including other brands overtime.

Large icons refer to global brands. Small icons refer to regional Asian brands. Click icon to view hotel name. Zoom in to show more hotels within a specific destinations. To view with map legend please click to Google Map here. Major city hotels excluded. Not all brands are shown. Independent hotels have been excluded.

The main observation are the existing development gaps in emerging destinations seen by absence or limited number of regional and global brands (but could be filled by domestic brands and independent hotels).

As developers, investors and brands recognize the emergent Asian middle class its only a matter of time before the more important of these gaps get filled. See some possible areas here.

One question to consider; is a small and growing hotel grouping, comprising regional and/or global brands, a sufficient leading indicator of how a destination will develop over time?

Note:

Data from hotel websites between December 2013 and May 2014. Some brands show future hotel openings while others don’t.

]]>&#160; This map shows hotel chains with their luxury and upscale brands across Asian resort destinations. Global brands included are by Starwood, Marriott, Four Seasons, Intercontinental, Club Med, Hilton/Conrad, Hyatt, Accor. Regional brands included are by Aman, Shangri-la, Banyan Tree, Anantara, Centara, Alila, GHM. We will be including other brands overtime. Large icons refer to global brands. Small icons refer to regional Asian brands. Click icon to view hotel name. Zoom in to show more hotels within a specific destinations. To view with map legend please click to Google Map here. Major city hotels excluded. Not all brands are shown. Independent hotels have been excluded. The main observation are the existing development gaps in emerging destinations seen by absence or limited number of regional and global brands (but could be filled by domestic brands and independent hotels). As developers, investors and brands recognize the emergent Asian middle class its only a matter of time before the more important of these gaps get filled. See some possible areas here. One question to consider; is a small and growing hotel grouping, comprising regional and/or global brands, a sufficient leading indicator of how a destination will develop over time? Note: Data from hotel websites between December 2013 and May 2014. Some brands show future hotel openings while others don&#8217;t. You just finished reading Mapping luxury hotel chain brands across Asian resort destinations! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16492">Mapping luxury hotel chain brands across Asian resort destinations</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/mapping-luxury-hotel-chain-brands-asian-resort-destinations/feed/013.0566540 100.3286133http://thedevelopmentadvisor.com/mapping-luxury-hotel-chain-brands-asian-resort-destinations/Greece: Hellenic Republic Asset Development Fund selling beacheshttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/Pgc4gkknG7I/GeneralAsia CoastalSun, 25 May 2014 18:44:18 PDThttp://thedevelopmentadvisor.com/?p=17967

While not in our geographical coverage it’s still instructive to know what public assets a government will sell to repay the country’s external debt. Click here to view asset list.

Greece’s best beaches are on sale by Greece’s privatization agency, the Hellenic Republic Asset Development Fund (TAIPED) in the name of supposed “development” and “utilization of public assets”. In fact a sale off of Greece best beaches for cash so that the debt-ridden country can pay back its lenders.

The beaches plots are to be on sale with “50 years of utilization by the new owners.”

]]>While not in our geographical coverage it&#8217;s still instructive to know what public assets a government will sell to repay the country&#8217;s external debt. Click here to view asset list. According to Keep Talking Greece: Greece’s best beaches are on sale by Greece’s privatization agency, the Hellenic Republic Asset Development Fund (TAIPED) in the name of supposed “development” and “utilization of public assets”. In fact a sale off of Greece best beaches for cash so that the debt-ridden country can pay back its lenders. The beaches plots are to be on sale with “50 years of utilization by the new owners.” &#160; You just finished reading Greece: Hellenic Republic Asset Development Fund selling beaches! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17967">Greece: Hellenic Republic Asset Development Fund selling beaches</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/greece-hellenic-republic-asset-development-fund-beaches/feed/0http://thedevelopmentadvisor.com/greece-hellenic-republic-asset-development-fund-beaches/Sustainable tourism certification programshttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/6Z1gPihVZ7o/Energy & EnvironmentAsia CoastalThu, 01 May 2014 04:05:17 PDThttp://thedevelopmentadvisor.com/?p=17895Did you know there are many organizations providing sustainable and green tourism certification? Some are region specific and niche while others are broad-based and worldwide.

]]>Did you know there are many organizations providing sustainable and green tourism certification? Some are region specific and niche while others are broad-based and worldwide. I came across this list from DestiNet &#8211; Knowledge Networking Portal for Sustainable &#38; Responsible Tourism that you might find useful. Click on the image to find out more. You just finished reading Sustainable tourism certification programs! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17895">Sustainable tourism certification programs</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/sustainable-tourism-certification-programs/feed/2http://thedevelopmentadvisor.com/sustainable-tourism-certification-programs/Lombok tourism set to doublehttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/Kk9ejFRYl30/Resort DevelopmentFeaturedAsia CoastalWed, 16 Apr 2014 23:03:35 PDThttp://thedevelopmentadvisor.com/?p=17798Tanjung Aan Beach, Lombok

With new airlines flying to Lombok, we expect international arrivals to boost Lombok tourism and to spur the development of new resorts. Lombok hotel supply should double to more than 4,500 rooms by 2022 supported by continued strong growth in visitor arrivals.

“World-class beaches, among the very best in Asia!” That was the type of comment coming from everyone around the table… almost 25 years ago! Scattered around the table were pictures of Lombok’s Mawun and Tanjung Aan beaches as well as information on the airport that was going to open “sometime soon”. Of course we were discussing the potential of Lombok to emerge as a strong tourism destination in Indonesia. In that year (1990 ), Bali was experiencing “huge” arrivals of approximately 1.2 million (forty percent of that being international arrivals) so we did the math and with only two international flights a day that would be roughly 100,000 international arrivals per year…not a bad way to kick start an emerging destination.

At that time, how wrong we were…the airport has opened but over 20 years from the latest date we imagined at the time. That is the key to opening up Lombok and specifically its Southern beaches for the world to enjoy.

The market frenzy at the time, following the beat of former Minister of Tourism Joop Ave’s drum, resulted in the development of nearly a third of the Island’s international quality guest rooms between 1989 and 1995.

Well, as they say, you ain’t seen nothing yet. At least in Lombok, we expect to be seeing a new cycle of boom years in hotel development that exceed the last gold rush handily. Developers from Indonesia, Europe, Singapore, Malaysia, Hong Kong, Thailand including others all have been increasingly active in pursuing opportunities the past two years.

While still relatively untouched, Lombok Island has been through significant changes in the last two years that has attracted many investors’ attention. The catalysts are the new airport and the market support (growth in international arrivals is estimated to be over 140 percent from 2012 to 2013) shown for the new routes plus the strong numbers being posted by top tier resorts in Lombok.

The upper tier resorts that have opened/expanded in the last two years, notably the Sudamala and Qunci Villa resorts in Mangsit beach have been quickly absorbed by the market. The former (opened in June 2013) achieving occupancies close to the market average by 4Q 2013 and Qunci Villas remaining in the mid 80 percent range through an expansion that doubled it in size in 2012. Despite this expansion in supply, RevPar growth in 2013 at the top tier of Resorts has been extremely strong and in 2014 RevPar growth should again easily be double digit. The three Gili islands in the Northwest have had banner years additionally facilitated by increasing numbers of fast craft ferries delivering tourists from Bali.

These factors combined with:

The availability of vacant land along kilometers of Asia’s finest beaches within a 30 minute drive of the new airport;

Lower land prices than in other resort destinations notably Bali;

Bali’s evolution into an urban Resort leading those that desire to find the idyllic tropical island holiday to search further afield; and

Lombok being able to function as a jumping off point for islands to the east;

are convincing developers and tourism officials to focus upon tourism related development in Lombok today.

A Look at Supply / Demand Factors

Mawun Beach, Lombok. Click to enlarge.

From 2010 to 2012, the hotel room supply (three to five star hotels) has grown at a CAGR (Compound Average Growth Rate) of 28.5% to reach almost 2,400 rooms in 2012 compared to approximately 1,400 rooms in 2010 . The main increase has been in 3-star hotels which represent about 42% of this existing supply; while 4-star hotels represent 47% of the hotel supply and the balance are 5-star hotels. There are an additional 500 rooms in 1 or 2-star hotels, most of which are less than 40 rooms in size.

The most significant statistics as relates demand in 2013 included the 15.5% growth in air arrivals over 2012 illustrated by 11 months of available data from January 2012 . While the 15.5 percent figure represents strong growth, arrivals on international flights increased 143 percent for the full year over 2012. International arrivals for the full year of 2013 exceeded 41,000 as compared to 17,032 recorded in 2012. Given International flight frequency does not change this year (and we do expect changes both positive and negative), we project that this arrival figure should be approximately 70,000 in 2014.

From 2007 to 2012, visitor arrivals checking in to star-rated hotels grew at a CAGR of 15.0% for domestic travelers which represent more than 369,000 check-ins in 2012 and at a CAGR of almost 23% for international visitors which accounted for just over 116,000 check-ins in 2012. International visitors tend to stay longer with an average length of stay of almost 4 days compared to 3 days for domestic travelers in 2012. The relatively low number of international tourists is explained by the limited number of direct flights; more than 220 domestic flights per week and 11 international flights per week in 2012. Until virtually the end of 2012, Silk Air was the only international carrier flying to Lombok, which explains why Singapore was in 2012 the top feeder market (19%) for direct air arrivals to Lombok. In 2012, Europeans accounted for a third of international arrivals (Germany, U.K., and France) and Malaysia about 10%. New flights from Kuala Lumpur (started November 2012), Perth (September 2013),) and Singapore (November 2013) are causing a further shift in key markets 2014. Top tier resorts sourced approximately half their guests from Europe in 2013 but with the new flights are seeing their market segmentation shifting to more Australians and Singaporeans thus far in 2014.

West Nusa Tenggara reported a total market-wide occupancy of 50 percent in 2011. However, occupancy significantly increased over the past two years and in 2013 was in the mid fifties . In addition, TSI reviewed a top tier sample of 9 hotels (representing 655 rooms) that mainly accommodate international guests. In our top-tier sample, 7 hotels are in the Senggigi area, one in Gili Trawangan and the Novotel is in Kuta area. For the last quarter of 2013, our sample achieved 77.5 percent occupancy at an ADR of 1,115,000 rupiah (almost US$100). Over the past six months up to end March (including the traditionally soft first quarter), this sample of upper tier properties achieved an aggregate occupancy of 73 percent at an average rate of 1,000,433 rupiah.

Stephane Servin, Chairman of the Lombok Hotels Association, has recently been quoted at estimating occupancy for all LHA hotels will be in the low to mid 70’s in 2014. TSI expects that the same upper tier of properties it studied will exceed the larger total number of LHA properties’ occupancy level in the coming year. This illustrates that Lombok is a popular destination for upper upscale resorts providing an authentic experience and is positioned to support growth in this segment of the market.

Despite the recent additions to the hotel supply, international brands (and strong domestic brands) remain limited in Lombok as only Starwood (Sheraton), Accor (Novotel), Tugu and Oberoi operate in Lombok and these branded hotels account for less than 15% of the total hotel room supply. This will change and relatively quickly; Archipelago hotels reportedly has five projects in the pipeline including the upmarket Royal Kamuela, and other upmarket international hotel chains are definitely going to enter the market with high quality resort projects in the next wave of development in Lombok.

Parallels with other Emerging Destinations

Seger Beach, Lombok

While many draw a comparison between Bali and Phuket, the recent development in Lombok also reminds us of Phuket’s neighbor, Krabi. Both Krabi and Lombok have had to develop in the shadow of a major touristic destination and their developments have several similarities including airport facilities and connecting transport systems.

Krabi had its first airport replaced in 1999. The new airport was a signal and hotels were built rapidly, similar to what occurred two decades ago in Lombok in anticipation of the new airport. However, the limited number of flights caused an imbalance in hotel supply which leads to efforts to improve the airport situation. Note that Phuket’s airport has been strained in terms of capacity issues as has Bali in recent years. In April 2012, the existing terminal in Krabi was dedicated to international arrivals while the new terminal was to receive domestic flights. The airport with an increased capacity of 3 million passengers is equipped with a longer runway enabling it to directly receive tourists from Russia and China. In October 2013, the airport started 24-hour operations as arrivals reached the one-million level. Further developments plan to increase the airport capacity to 5 million passengers.

In terms of passenger arrivals, Krabi grew from 102,823 arrivals in 2002 to 653,519 for the first 11 months of 2013 , about 21% of arrivals were international for the same 11-month period, essentially from Singapore and Kuala Lumpur. This represented approximately 0.6% of international arrivals to Thailand in 2013. Lombok captured only about 0.2 percent of total International visitors to Indonesia in 2012. In 2014, TSI estimates that Lombok’s share of total direct international arrivals will exceed 0.7 percent, significant growth indeed. We expect this number to continue to grow significantly over the period we have studied which is not only healthy for Indonesian tourism as a whole but certainly bodes well for providing an economic boost to Lombok’s fortunes. As a point of reference, Bali since 1997 has captured more than 25% of international visors to Indonesia with this steadily increasing to approximately 36% in 2013. Phuket while also increasing in importance as a Thai destination over the same period captured 11.2% (2013) of total visitors to Thailand which illustrates the better balance Thailand has in terms of alternative destinations to Indonesia at present. This underscores the relevance of Indonesia’s efforts to develop other tourism destinations.

Announced since the late 80’s, Lombok’s new international airport finally commenced operation in 2011. While the runway is currently 2,750 meters-long, plans are to increase it to 4,000 meters and terminal capacity to 3 million passengers. Arrivals in Lombok increased from 579,705 passengers in 2009 to 896,348 in 2012; however, international visitors represented less than 2 percent of arrivals. Arrivals increased to nearly one million in 2013 with International arrivals doubling to approximately 4% of total arrivals. This is a significant market dynamic that is impacting the tourism market. We expect International arrivals to increase to approximately 7% of total arrivals in 2014 if current international air service remains constant. There are rumors of additional service to Australia and Hong Kong plus and as experienced in Krabi, the increase in international charters is also a high probability. The Singapore/Lombok sector appears to be at imbalance and short term adjustments are expected.

It is interesting to recall how Bali has evolved. In 1982, 152,364 foreign tourists visited Bali, 490,729 in 1990, 1.5 million in 2000 and more than 3.2 million in 2013 . In 1970, Kuta had no restaurants and only 2 hotels. A decade later, the town counted 100 hotels and 27 restaurants . The story of Kuta (Bali) hints of the upcoming development of Kuta (Lombok).

Another example is the development of Boracay and its two supporting airports Caticlan and Kalibo. Caticlan which accommodates domestic carriers has had a stagnant number of arrivals since 2008 of approximately 600,000. Kalibo which caters to international tourists is known for being the fastest growing airport in the Philippines with a CAGR of 24.7% from 2008 to 2012 and welcomed approximately 1.2 million tourists in 2012 .

These comparisons explain how the increase in international arrivals has enabled destinations like Bali, Krabi and Boracay to take the next step in their evolution and become significant international tourist destinations. The new airport in Lombok with its 551-hectares of land has the potential to support Lombok development; the terminal capacity is 3 million arrivals and the runway is planned to be enlarged to accommodate larger planes The airport’s location is expected to cause a shift from Northwest Lombok (Senggigi/Gilis) being the only dominant tourism center to enable South Lombok and its pristine beaches to provide Lombok the ability to offer multiple types of environment for tourists.

The next stage in Lombok’s evolution includes the development of attractions and tourism support infrastructure ranging from improved health care facilities, ground tour operators, wedding planners to attractions. Lombok has a golf course in the North-West of the island and there are plans to develop a second one in the south. In comparison, Krabi has two golf courses (and several in nearby Phuket), Bali has five and even the small island of Boracay has a golf course. Another important element to facilitate mass tourism is the presence of attractions such as water parks. Kuta Green Park, Waterbom Bali, Circus Waterpark Bali are examples in Bali. Krabi Town Amusement/Tree Top Adventure Park are examples in Krabi while Boracay has Cool Waves Ranch. A number of investors are reviewing these various types of tourism related business in Lombok today.

For the next 2 to 3 years, new development will be focused in Northwest Lombok as the area has existing restaurants and other support business and proximity to the Gili Islands, Rinjani and other attractions. However, by 2018 we should see new hotels opening South Lombok, the Mandalika project gaining the most attention to date.

Located in Northwest Lombok, the luxury Spirit Resort, is under construction and should open in 2015. The Royal Kamuela construction has also started and we expect the property to debut in 2015. Three recent sales of older hotels in Mangsit beach, Windy Resort, Santi Resort and Alang Alang all are understood to be redevelopment projects that will be targeted at upscale demand for which this area has become famous. It is noteworthy that many of these projects are being developed with international investors including one from Malaysia in addition to Indonesian parties. One of these projects, the former Santi Resort is expected to open this year. The Mangsit Beach area with venerables including Puri Mas Resort, Qunci Villas and Jeeva Klui has developed into a cluster of successful luxury boutique resorts in a quiet setting yet proximate to the tourism center of Senggigi. We also expect the Gili Islands off Northwest Lombok to experience an increase in hotel product and redevelopment/repositioning of some of the existing hotel stock.

Contrary to some opinions, TSI research indicates that a decade from now, the Southern Lombok area will outstrip the Northwest in terms of number of new deluxe and luxury hotel rooms. If development remains controlled, areas with a niche such as Senggigi, Mangsit and the Northern Gilis will all have a bright future. In the South, land banking that has been active with investors for two decades has helped to assemble numbers of large tracks of land that will facilitate rapid development of South Lombok. The Sundancer hotel is significantly completed and could open in 2015. In addition to Mandalika there is a steady stream of investors from Jakarta, Singapore, Hong Kong and beyond that are rapidly developing plans to develop multi-property master-planned resorts and hotel product and support businesses in the South. When discussing the South we should note that not only do we anticipate significant development on Lombok’s Southern beaches but also in the Southern islands as investor activity in this area is significant. Our research gives us confidence that the first of these and probably more than one, will open by 2018.

While it is not possible to determine the exact completion date of the many projects being discussed, TSI has reviewed the market and its research indicates that by 2022, the hotel room supply in Lombok will certainly double from current levels.

About TSI

Tourism Solutions International (TSI) is a hospitality investment firm that in addition to its investment and asset management activities, conducts select advisory work that is related to investment within the industry. Established in 1991, it’s Principal and associates have worked in the industry throughout Asia since the 1980’s.

TSI and its founder, Eric J Levy, have been involved in numerous notable hotel acquisitions, developments and redevelopments throughout Asia over the last three decades.

TSI is driven by a mentality of achieving bottom-line results while maintaining the highest of ethical standards related to both its investment activities and advisory services.

Positive and long-term relationships whether with partners, clients or service providers are highly valued by TSI.

]]>This is a guest contribution from Eric Levy and Fred Patet of Tourism Solutions International. With new airlines flying to Lombok, we expect international arrivals to boost Lombok tourism and to spur the development of new resorts. Lombok hotel supply should double to more than 4,500 rooms by 2022 supported by continued strong growth in visitor arrivals. “World-class beaches, among the very best in Asia!” That was the type of comment coming from everyone around the table… almost 25 years ago! Scattered around the table were pictures of Lombok’s Mawun and Tanjung Aan beaches as well as information on the airport that was going to open “sometime soon”. Of course we were discussing the potential of Lombok to emerge as a strong tourism destination in Indonesia. In that year (1990 ), Bali was experiencing “huge” arrivals of approximately 1.2 million (forty percent of that being international arrivals) so we did the math and with only two international flights a day that would be roughly 100,000 international arrivals per year…not a bad way to kick start an emerging destination. At that time, how wrong we were…the airport has opened but over 20 years from the latest date we imagined at the time. That is the key to opening up Lombok and specifically its Southern beaches for the world to enjoy. The market frenzy at the time, following the beat of former Minister of Tourism Joop Ave’s drum, resulted in the development of nearly a third of the Island’s international quality guest rooms between 1989 and 1995. Well, as they say, you ain’t seen nothing yet. At least in Lombok, we expect to be seeing a new cycle of boom years in hotel development that exceed the last gold rush handily. Developers from Indonesia, Europe, Singapore, Malaysia, Hong Kong, Thailand including others all have been increasingly active in pursuing opportunities the past two years. While still relatively untouched, Lombok Island has been through significant changes in the last two years that has attracted many investors’ attention. The catalysts are the new airport and the market support (growth in international arrivals is estimated to be over 140 percent from 2012 to 2013) shown for the new routes plus the strong numbers being posted by top tier resorts in Lombok. The upper tier resorts that have opened/expanded in the last two years, notably the Sudamala and Qunci Villa resorts in Mangsit beach have been quickly absorbed by the market. The former (opened in June 2013) achieving occupancies close to the market average by 4Q 2013 and Qunci Villas remaining in the mid 80 percent range through an expansion that doubled it in size in 2012. Despite this expansion in supply, RevPar growth in 2013 at the top tier of Resorts has been extremely strong and in 2014 RevPar growth should again easily be double digit. The three Gili islands in the Northwest have had banner years additionally facilitated by increasing numbers of fast craft ferries delivering tourists from Bali. These factors combined with: The availability of vacant land along kilometers of Asia’s finest beaches within a 30 minute drive of the new airport; Lower land prices than in other resort destinations notably Bali; Bali’s evolution into an urban Resort leading those that desire to find the idyllic tropical island holiday to search further afield; and Lombok being able to function as a jumping off point for islands to the east; are convincing developers and tourism officials to focus upon tourism related development in Lombok today. &#160; A Look at Supply / Demand Factors From 2010 to 2012, the hotel room supply (three to five star hotels) has grown at a CAGR (Compound Average Growth Rate) of 28.5% to reach almost 2,400 rooms in 2012 compared to approximately 1,400 rooms in 2010 . The main increase has been in 3-star hotels which represent about 42% of this existing supply; while 4-star hotels represent 47% of the hotel supply and the balance are 5-star hotels. There are an additional 500 rooms in 1 or 2-star hotels, most of which are less than 40 rooms in size. The most significant statistics as relates demand in 2013 included the 15.5% growth in air arrivals over 2012 illustrated by 11 months of available data from January 2012 . While the 15.5 percent figure represents strong growth, arrivals on international flights increased 143 percent for the full year over 2012. International arrivals for the full year of 2013 exceeded 41,000 as compared to 17,032 recorded in 2012. Given International flight frequency does not change this year (and we do expect changes both positive and negative), we project that this arrival figure should be approximately 70,000 in 2014. From 2007 to 2012, visitor arrivals checking in to star-rated hotels grew at a CAGR of 15.0% for domestic travelers which represent more than 369,000 check-ins in 2012 and at a CAGR of almost 23% for international visitors which accounted for just over 116,000 check-ins in 2012. International visitors tend to stay longer with an average length of stay of almost 4 days compared to 3 days for domestic travelers in 2012. The relatively low number of international tourists is explained by the limited number of direct flights; more than 220 domestic flights per week and 11 international flights per week in 2012. Until virtually the end of 2012, Silk Air was the only international carrier flying to Lombok, which explains why Singapore was in 2012 the top feeder market (19%) for direct air arrivals to Lombok. In 2012, Europeans accounted for a third of international arrivals (Germany, U.K., and France) and Malaysia about 10%. New flights from Kuala Lumpur (started November 2012), Perth (September 2013),) and Singapore (November 2013) are causing a further shift in key markets 2014. Top tier resorts sourced approximately half their guests from Europe in 2013 but with the new flights are seeing their market segmentation shifting to more Australians and Singaporeans thus far in 2014. West Nusa Tenggara reported a total market-wide occupancy of 50 percent in 2011. However, occupancy significantly increased over the past two years and in 2013 was in the mid fifties . In addition, TSI reviewed a top tier sample of 9 hotels (representing 655 rooms) that mainly accommodate international guests. In our top-tier sample, 7 hotels are in the Senggigi area, one in Gili Trawangan and the Novotel is in Kuta area. For the last quarter of 2013, our sample achieved 77.5 percent occupancy at an ADR of 1,115,000 rupiah (almost US$100). Over the past six months up to end March (including the traditionally soft first quarter), this sample of upper tier properties achieved an aggregate occupancy of 73 percent at an average rate of 1,000,433 rupiah. Stephane Servin, Chairman of the Lombok Hotels Association, has recently been quoted at estimating occupancy for all LHA hotels will be in the low to mid 70’s in 2014. TSI expects that the same upper tier of properties it studied will exceed the larger total number of LHA properties’ occupancy level in the coming year. This illustrates that Lombok is a popular destination for upper upscale resorts providing an authentic experience and is positioned to support growth in this segment of the market. Despite the recent additions to the hotel supply, international brands (and strong domestic brands) remain limited in Lombok as only Starwood (Sheraton), Accor (Novotel), Tugu and Oberoi operate in Lombok and these branded hotels account for less than 15% of the total hotel room supply. This will change and relatively quickly; Archipelago hotels reportedly has five projects in the pipeline including the upmarket Royal Kamuela, and other upmarket international hotel chains are definitely going to enter the market with high quality resort projects in the next wave of development in Lombok. &#160; Parallels with other Emerging Destinations While many draw a comparison between Bali and Phuket, the recent development in Lombok also reminds us of Phuket’s neighbor, Krabi. Both Krabi and Lombok have had to develop in the shadow of a major touristic destination and their developments have several similarities including airport facilities and connecting transport systems. Krabi had its first airport replaced in 1999. The new airport was a signal and hotels were built rapidly, similar to what occurred two decades ago in Lombok in anticipation of the new airport. However, the limited number of flights caused an imbalance in hotel supply which leads to efforts to improve the airport situation. Note that Phuket’s airport has been strained in terms of capacity issues as has Bali in recent years. In April 2012, the existing terminal in Krabi was dedicated to international arrivals while the new terminal was to receive domestic flights. The airport with an increased capacity of 3 million passengers is equipped with a longer runway enabling it to directly receive tourists from Russia and China. In October 2013, the airport started 24-hour operations as arrivals reached the one-million level. Further developments plan to increase the airport capacity to 5 million passengers. In terms of passenger arrivals, Krabi grew from 102,823 arrivals in 2002 to 653,519 for the first 11 months of 2013 , about 21% of arrivals were international for the same 11-month period, essentially from Singapore and Kuala Lumpur. This represented approximately 0.6% of international arrivals to Thailand in 2013. Lombok captured only about 0.2 percent of total International visitors to Indonesia in 2012. In 2014, TSI estimates that Lombok’s share of total direct international arrivals will exceed 0.7 percent, significant growth indeed. We expect this number to continue to grow significantly over the period we have studied which is not only healthy for Indonesian tourism as a whole but certainly bodes well for providing an economic boost to Lombok’s fortunes. As a point of reference, Bali since 1997 has captured more than 25% of international visors to Indonesia with this steadily increasing to approximately 36% in 2013. Phuket while also increasing in importance as a Thai destination over the same period captured 11.2% (2013) of total visitors to Thailand which illustrates the better balance Thailand has in terms of alternative destinations to Indonesia at present. This underscores the relevance of Indonesia’s efforts to develop other tourism destinations. Announced since the late 80’s, Lombok’s new international airport finally commenced operation in 2011. While the runway is currently 2,750 meters-long, plans are to increase it to 4,000 meters and terminal capacity to 3 million passengers. Arrivals in Lombok increased from 579,705 passengers in 2009 to 896,348 in 2012; however, international visitors represented less than 2 percent of arrivals. Arrivals increased to nearly one million in 2013 with International arrivals doubling to approximately 4% of total arrivals. This is a significant market dynamic that is impacting the tourism market. We expect International arrivals to increase to approximately 7% of total arrivals in 2014 if current international air service remains constant. There are rumors of additional service to Australia and Hong Kong plus and as experienced in Krabi, the increase in international charters is also a high probability. The Singapore/Lombok sector appears to be at imbalance and short term adjustments are expected. It is interesting to recall how Bali has evolved. In 1982, 152,364 foreign tourists visited Bali, 490,729 in 1990, 1.5 million in 2000 and more than 3.2 million in 2013 . In 1970, Kuta had no restaurants and only 2 hotels. A decade later, the town counted 100 hotels and 27 restaurants . The story of Kuta (Bali) hints of the upcoming development of Kuta (Lombok). Another example is the development of Boracay and its two supporting airports Caticlan and Kalibo. Caticlan which accommodates domestic carriers has had a stagnant number of arrivals since 2008 of approximately 600,000. Kalibo which caters to international tourists is known for being the fastest growing airport in the Philippines with a CAGR of 24.7% from 2008 to 2012 and welcomed approximately 1.2 million tourists in 2012 . These comparisons explain how the increase in international arrivals has enabled destinations like Bali, Krabi and Boracay to take the next step in their evolution and become significant international tourist destinations. The new airport in Lombok with its 551-hectares of land has the potential to support Lombok development; the terminal capacity is 3 million arrivals and the runway is planned to be enlarged to accommodate larger planes The airport’s location is expected to cause a shift from Northwest Lombok (Senggigi/Gilis) being the only dominant tourism center to enable South Lombok and its pristine beaches to provide Lombok the ability to offer multiple types of environment for tourists. The next stage in Lombok’s evolution includes the development of attractions and tourism support infrastructure ranging from improved health care facilities, ground tour operators, wedding planners to attractions. Lombok has a golf course in the North-West of the island and there are plans to develop a second one in the south. In comparison, Krabi has two golf courses (and several in nearby Phuket), Bali has five and even the small island of Boracay has a golf course. Another important element to facilitate mass tourism is the presence of attractions such as water parks. Kuta Green Park, Waterbom Bali, Circus Waterpark Bali are examples in Bali. Krabi Town Amusement/Tree Top Adventure Park are examples in Krabi while Boracay has Cool Waves Ranch. A number of investors are reviewing these various types of tourism related business in Lombok today. For the next 2 to 3 years, new development will be focused in Northwest Lombok as the area has existing restaurants and other support business and proximity to the Gili Islands, Rinjani and other attractions. However, by 2018 we should see new hotels opening South Lombok, the Mandalika project gaining the most attention to date. Located in Northwest Lombok, the luxury Spirit Resort, is under construction and should open in 2015. The Royal Kamuela construction has also started and we expect the property to debut in 2015. Three recent sales of older hotels in Mangsit beach, Windy Resort, Santi Resort and Alang Alang all are understood to be redevelopment projects that will be targeted at upscale demand for which this area has become famous. It is noteworthy that many of these projects are being developed with international investors including one from Malaysia in addition to Indonesian parties. One of these projects, the former Santi Resort is expected to open this year. The Mangsit Beach area with venerables including Puri Mas Resort, Qunci Villas and Jeeva Klui has developed into a cluster of successful luxury boutique resorts in a quiet setting yet proximate to the tourism center of Senggigi. We also expect the Gili Islands off Northwest Lombok to experience an increase in hotel product and redevelopment/repositioning of some of the existing hotel stock. Contrary to some opinions, TSI research indicates that a decade from now, the Southern Lombok area will outstrip the Northwest in terms of number of new deluxe and luxury hotel rooms. If development remains controlled, areas with a niche such as Senggigi, Mangsit and the Northern Gilis will all have a bright future. In the South, land banking that has been active with investors for two decades has helped to assemble numbers of large tracks of land that will facilitate rapid development of South Lombok. The Sundancer hotel is significantly completed and could open in 2015. In addition to Mandalika there is a steady stream of investors from Jakarta, Singapore, Hong Kong and beyond that are rapidly developing plans to develop multi-property master-planned resorts and hotel product and support businesses in the South. When discussing the South we should note that not only do we anticipate significant development on Lombok’s Southern beaches but also in the Southern islands as investor activity in this area is significant. Our research gives us confidence that the first of these and probably more than one, will open by 2018. While it is not possible to determine the exact completion date of the many projects being discussed, TSI has reviewed the market and its research indicates that by 2022, the hotel room supply in Lombok will certainly double from current levels. &#160; About TSI Tourism Solutions International (TSI) is a hospitality investment firm that in addition to its investment and asset management activities, conducts select advisory work that is related to investment within the industry. Established in 1991, it’s Principal and associates have worked in the industry throughout Asia since the 1980’s. TSI and its founder, Eric J Levy, have been involved in numerous notable hotel acquisitions, developments and redevelopments throughout Asia over the last three decades. TSI is driven by a mentality of achieving bottom-line results while maintaining the highest of ethical standards related to both its investment activities and advisory services. Positive and long-term relationships whether with partners, clients or service providers are highly valued by TSI. Images: Tourism Solutions International You just finished reading Lombok tourism set to double! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17798">Lombok tourism set to double</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/lombok-tourism-set-to-double/feed/0http://thedevelopmentadvisor.com/lombok-tourism-set-to-double/Asia coastal destination development earthquake, tsunami and weatherhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/4PlH619yrhA/Tourism DevelopmentFeaturedMapAsia CoastalSun, 06 Apr 2014 00:05:14 PDThttp://thedevelopmentadvisor.com/?p=17718

I’m sure you’re familiar with the Pacific Ring of Fire. It’s the area where many earthquakes and volcanic eruptions happens around the Pacific Ocean. Tokyo and San Francisco are cities within the ring of fire that comes to mind.

Refer to the UN International Strategy for Disaster Reduction map below as well as the accompanying map legend.

The main contrasts are (1) between earthquake and minimal-earthquake areas, and (2) intensity of the earthquake prone areas.

Coastal resort destinations within continental Southeast Asia, except for northern Myanmar, face minimal or no earthquakes while destinations closer to the Pacific Ring of Fire such as Bali, Lombok and Boracay are within the earthquakes zone.

At the extreme are parts of Philippines which have had many earthquakes with some areas at the ‘catastrophic’ scale. The Manila Observatory produces very useful in-depth maps of natural phenomenon affecting the country. The map below shows the recorded number and size of earthquakes.

Tsunami Risk

If you believe you have avoided the consequences of being in an earthquake zone think about it again. It’s not as risk-less as it seems. When the Indian Ocean earthquake struck in 2004 the follow-on tsunami hit Phuket and Sri Lanka with enough force causing loss of life and property damage. Thailand’s western coast as well as Myanmar’s Mergui archipelago are earthquake free but on the other hand exposed to high tsunami risk. Refer to the tsunami risk map.

]]>All development occurs in areas affected by natural phenomenon to a greater or lesser degree. We previously looked at Southeast Asia&#8217;s water supply risks and the region&#8217;s rainfall and typhoon maps. In this post we want to identify the earthquake zones in our area of interest. I&#8217;m sure you&#8217;re familiar with the Pacific Ring of Fire. It&#8217;s the area where many earthquakes and volcanic eruptions happens around the Pacific Ocean. Tokyo and San Francisco are cities within the ring of fire that comes to mind. Refer to the UN International Strategy for Disaster Reduction map below as well as the accompanying map legend. &#160; The main contrasts are (1) between earthquake and minimal-earthquake areas, and (2) intensity of the earthquake prone areas. Coastal resort destinations within continental Southeast Asia, except for northern Myanmar, face minimal or no earthquakes while destinations closer to the Pacific Ring of Fire such as Bali, Lombok and Boracay are within the earthquakes zone. At the extreme are parts of Philippines which have had many earthquakes with some areas at the &#8216;catastrophic&#8217; scale. The Manila Observatory produces very useful in-depth maps of natural phenomenon affecting the country. The map below shows the recorded number and size of earthquakes. &#160; &#160; Tsunami Risk If you believe you have avoided the consequences of being in an earthquake zone think about it again. It&#8217;s not as risk-less as it seems. When the Indian Ocean earthquake struck in 2004 the follow-on tsunami hit Phuket and Sri Lanka with enough force causing loss of life and property damage. Thailand&#8217;s western coast as well as Myanmar&#8217;s Mergui archipelago are earthquake free but on the other hand exposed to high tsunami risk. Refer to the tsunami risk map. Update: Phuket while out of the Pacific Ring of Fire is still susceptible to localised earthquake from the Khlong Marui fault. Weather or Earthquake? After knowing a little about earthquake zones in Asia let&#8217;s attempt to tie it back to coastal tourism development. Which do you think will have a relatively more negative impact on coastal tourism development &#8211; non-optimal weather or being in an earthquake zone? Would you agree a destination having an extended monsoon (in an earthquake-free location) is less desirable than a destination in the middle of an earthquake zone (with optimal year-round weather)? Let us know your preference by voting in the poll below. &#160; Poll &#160; Images: Wikipedia, Manila Observatory, UN ISDR, IBN Live You just finished reading Asia coastal destination development earthquake, tsunami and weather! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17718">Asia coastal destination development earthquake, tsunami and weather</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/asia-coastal-destination-development-earthquake-tsunami-weather/feed/0http://thedevelopmentadvisor.com/asia-coastal-destination-development-earthquake-tsunami-weather/Cambodia: Kep tourism’s Som Chenda outlines future planshttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/S1DRzGQZA8E/Tourism DevelopmentAsia CoastalTue, 25 Mar 2014 21:00:06 PDThttp://thedevelopmentadvisor.com/?p=17624Cambodia’s Kep and Thailand’s Hua Hin are South East Asia’s oldest beach resort towns. Kep was a well-know beach destination from the early 1900′s up till the 1960′s. Originally named La Perle de la Côte d’Agathe it was also home to the Cambodian King’s resort residence. It looks like Kep as a tourism destination will be coming back riding on Cambodia’s economic development.

This interview with Som Chenda, Director of the Cambodia’s Kep tourism department, has been re-produced from the The Phnom Penh Post.

With renovations to its beaches, increased publicity and careful planning, Kep province is gradually raising its standards as a holiday destination. In a recent interview, Som Chenda, the newly appointed director of the Kep tourism department – he was in charge of Sihanoukville before moving to the post in 2012 – talks to the Post’s Chan Muy Hong about recent upgrades, and discusses what’s next.

What is the tourism vision for Kep?

Our vision is to turn Kep province into a flower city in the future, just like Dalat, in Vietnam. Tourists who visit Kep enjoy the already established beautiful nature, and we have plans to plant more trees and flowers around town. Tourists also come to Kep for the taste of our distinctive seafood, which you cannot find somewhere else. As we know, Koh Kong and Sihanoukville provinces are also on the coast, but their sea food is not as good as Kep’s.

What about ongoing projects?

The road from Kampot to Kep province is being expanded. We are transporting white sand from Sihanoukville and Kampot to fill in the beach here to make it an even more beautiful bay. There is a Coast Guard group to maintain visitors’ safety when they come to the beach. Public bathrooms have also been improved. We have an information centre for tourists.

The province also plans to build an international port to receive tourists in larger cruise ships from Thailand and Vietnam, especially tourists from Pho Quoc Island. Today, we already have one, but it is a smaller port and is serving tourists who travel to nearby islands in our region only.

What’s the difference between Kep and Sihanoukville tourism?

Kep province is more about nature and relaxing. The province does not encourage entertainment-based tourism like Sihanoukville, where disco music, karaoke and bars are all located. Tourists who come to Kep come to relax, to treat their health. We are planting more trees, more flowers and also palm oil trees and we will make those into a public park.

However, we are encouraging more entertainment-based tourism development in Sihanoukville, such as guest houses, hotels, restaurants, karaoke, discos, bars and casinos. So for tourists who like to enjoy loud music, they can go to Sihanoukville. And for those who want to relax in nature, kind of quiet, and absorb fresh air, they can go to Kep.

How will the government respond once investors start coming in with larger tourism projects that could threaten the quiet vibe Kep is known for?

Indeed, we want developers, but we have to be careful and responsible. We have thought about the location where we would allow development for entertainment. In the case that we are compelled to establish more bars, discos or a casino, the projects can be developed in the eastern part of the mountains. And we will preserve the western part of the mountain for quiet tourism.

However, so far we have not seen such development in Kep yet. The plans mostly involve building resorts, hotels, guest houses and bungalows.

Cambodian King’s Beach Resort Residence, Kep, Cambodia

What is the government planning on doing with the abandoned buildings from the French colonial period?

I think it is important to keep the buildings remaining from that era. So far, I have not heard about any demolition plans. We need to link conservation and development together, meaning that if we develop, then we also have to think about conservation. Regarding the question of how we can balance the two, it really depends on the situation.

Are there other infrastructure plans?

The re-arrangement of the sewage system and a water filtration plant project are supported by the Asian Development Bank (ADB).

I do not know when that will start, but I am sure that it will be soon. Within the next few years, we will see rapid economic growth in Kep, with an increased number of tourists and investors. It means the standards of living for people here will be better too.

]]>Cambodia&#8217;s Kep and Thailand&#8217;s Hua Hin are South East Asia’s oldest beach resort towns. Kep was a well-know beach destination from the early 1900′s up till the 1960′s. Originally named La Perle de la Côte d’Agathe it was also home to the Cambodian King’s resort residence. It looks like Kep as a tourism destination will be coming back riding on Cambodia&#8217;s economic development. This interview with Som Chenda, Director of the Cambodia&#8217;s Kep tourism department, has been re-produced from the The Phnom Penh Post. With renovations to its beaches, increased publicity and careful planning, Kep province is gradually raising its standards as a holiday destination. In a recent interview, Som Chenda, the newly appointed director of the Kep tourism department – he was in charge of Sihanoukville before moving to the post in 2012 – talks to the Post’s Chan Muy Hong about recent upgrades, and discusses what’s next. What is the tourism vision for Kep? Our vision is to turn Kep province into a flower city in the future, just like Dalat, in Vietnam. Tourists who visit Kep enjoy the already established beautiful nature, and we have plans to plant more trees and flowers around town. Tourists also come to Kep for the taste of our distinctive seafood, which you cannot find somewhere else. As we know, Koh Kong and Sihanoukville provinces are also on the coast, but their sea food is not as good as Kep’s. What about ongoing projects? The road from Kampot to Kep province is being expanded. We are transporting white sand from Sihanoukville and Kampot to fill in the beach here to make it an even more beautiful bay. There is a Coast Guard group to maintain visitors’ safety when they come to the beach. Public bathrooms have also been improved. We have an information centre for tourists. The province also plans to build an international port to receive tourists in larger cruise ships from Thailand and Vietnam, especially tourists from Pho Quoc Island. Today, we already have one, but it is a smaller port and is serving tourists who travel to nearby islands in our region only. What’s the difference between Kep and Sihanoukville tourism? Kep province is more about nature and relaxing. The province does not encourage entertainment-based tourism like Sihanoukville, where disco music, karaoke and bars are all located. Tourists who come to Kep come to relax, to treat their health. We are planting more trees, more flowers and also palm oil trees and we will make those into a public park. However, we are encouraging more entertainment-based tourism development in Sihanoukville, such as guest houses, hotels, restaurants, karaoke, discos, bars and casinos. So for tourists who like to enjoy loud music, they can go to Sihanoukville. And for those who want to relax in nature, kind of quiet, and absorb fresh air, they can go to Kep. How will the government respond once investors start coming in with larger tourism projects that could threaten the quiet vibe Kep is known for? Indeed, we want developers, but we have to be careful and responsible. We have thought about the location where we would allow development for entertainment. In the case that we are compelled to establish more bars, discos or a casino, the projects can be developed in the eastern part of the mountains. And we will preserve the western part of the mountain for quiet tourism. However, so far we have not seen such development in Kep yet. The plans mostly involve building resorts, hotels, guest houses and bungalows. What is the government planning on doing with the abandoned buildings from the French colonial period? I think it is important to keep the buildings remaining from that era. So far, I have not heard about any demolition plans. We need to link conservation and development together, meaning that if we develop, then we also have to think about conservation. Regarding the question of how we can balance the two, it really depends on the situation. Are there other infrastructure plans? The re-arrangement of the sewage system and a water filtration plant project are supported by the Asian Development Bank (ADB). I do not know when that will start, but I am sure that it will be soon. Within the next few years, we will see rapid economic growth in Kep, with an increased number of tourists and investors. It means the standards of living for people here will be better too. Location Map Image: Phnom Penh Post, Spring Valley You just finished reading Cambodia: Kep tourism's Som Chenda outlines future plans! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17624">Cambodia: Kep tourism's Som Chenda outlines future plans</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/cambodia-kep-tourism-som-chenda-future-plans/feed/010.4955816 104.3356628http://thedevelopmentadvisor.com/cambodia-kep-tourism-som-chenda-future-plans/Readers overwhelmingly believe Desaru Coast should be biggerhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/APg8pMDQiso/Tourism DevelopmentFeaturedAsia CoastalMon, 24 Mar 2014 00:04:36 PDThttp://thedevelopmentadvisor.com/?p=17636In July 2012 we published a post titled ‘Malaysia: Desaru Coast an international tourism destination?’. In it we suggested that the tourism plan for Desaru did not fully take advantage of the unique location next to Singapore. If you are not familiar with the Desaru Coast destination project click on the weblink to find out more. At the end of the post we asked readers whether they thought Desaru Coast could be significantly scaled up as an international tourism destination.

We are glad to say poll results overwhelming shows that the Desaru Coast master plan should definitely be ‘up-sized’. More than 80% of the 98 readers polled agree with our conclusions. Refer to results below.

]]>In July 2012 we published a post titled &#8216;Malaysia: Desaru Coast an international tourism destination?&#8217;. In it we suggested that the tourism plan for Desaru did not fully take advantage of the unique location next to Singapore. If you are not familiar with the Desaru Coast destination project click on the weblink to find out more. At the end of the post we asked readers whether they thought Desaru Coast could be significantly scaled up as an international tourism destination. We are glad to say poll results overwhelming shows that the Desaru Coast master plan should definitely be &#8216;up-sized&#8217;. More than 80% of the 98 readers polled agree with our conclusions. Refer to results below. Considering that peninsula Malaysia has Langkawi as the only major coastal tourism destination will this prompt the master developer, Destination Resort Holdings, to review the overall strategy? After all, judging from Phuket&#8217;s success, coastal resort destinations will likely be one of the main beneficiaries of Asia&#8217;s tourism boom. If you&#8217;ve participated in this poll we&#8217;d like to say, thank you! &#160; &#160; Image: Destination Resort Holdings You just finished reading Readers overwhelmingly believe Desaru Coast should be bigger! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17636">Readers overwhelmingly believe Desaru Coast should be bigger</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/desaru-coast-master-plan-expanded-bigger/feed/1http://thedevelopmentadvisor.com/desaru-coast-master-plan-expanded-bigger/How much of Asia’s emerging coastal resort land is in strong hands?http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/IONwMNegZ4c/Land DevelopmentAsia CoastalThu, 20 Mar 2014 04:49:11 PDThttp://thedevelopmentadvisor.com/?p=16561

The image above comes from Bali. Are local farmers and land owners annoyed at being approached far too often to sell their land for resort and villa development?

A thought crossed my mind after seeing the photo: How much of Asia’s prime emerging coastal resort land is already in strong hands?

By strong hands I mean land owners who don’t need or want to sell, can keep the property undeveloped for a long time and pass it down through the generations, or develop the property themselves, or sell only at full or rich valuations. That is, if it comes on the market, not at a discount. The downside of land being in strong hands is that owners have no need to sell in a hurry leading to a slower pace of coastal development in places where this happens most.

There’s no easy way to find out how much of the coastal land is already in strong hands but I’m sure increasingly more as land owners start recognizing the tourism potential of coastal land – especially land in prime emerging locations.

With more coastal land being in stronger hands we can be sure of two things: (1) the era of highly discounted and cheap land will be over, except for outlying locations in coastline abundant countries like Indonesia and Philippines, and concurrently (2) limited and managed availability of sizable resort sites at recognized emerging destinations. Vietnam’s Cam Ranh bay is a good example where investors purchased beach front land some time back but building works have not even started. Refer to the March 2014 issue of the Vietnam Resort Report for more on Cam Ranh’s undeveloped projects.

Governments, probably owning the largest land bank in undeveloped emerging locations will not likely release land without reasonable compensation which at least offsets some of the infrastructure cost associated with developing the place.

Limited preferred locations and large parcels

Some of the coastal land reclamation projects coming up in the Asia region are responding to limited or non-existent large development sites in proven destinations and coastal urban centers. Examples include Melaka Gateway,Seri Tanjung Pinang,Manila Bay and the controversial proposal to develop Bali’s Benoa Bay. Why? Because there’s more incentive and less risk for large corporates to enter into these projects compared to alternative small infill developments or new projects in emerging locations. Adding to this, urban planners have not or are not increasing development intensity in existing locations as well as inland hinterland. And furthermore, existing fragmented small land ownership makes amalgamation into large parcels very challenging or even impossible.

Take for example, TCC Land’s Cha’am resort town master plan shown below. It clearly demonstrates the challenge of amalgamating beach front land. The bulk of this project does not have direct access to the beach front except at the two extreme ends of the master plan.

TCC Land’s Cha’am resort town master plan

What does this mean for developing large foot print resort hotels?

A 300 to 400 room low density large foot print resort will need anything from 10 to 20 hectares. Are large land parcels in good locations on the beach front readily available in today’s market for a reasonable price?

If sizable beach front development land is not available at your preferred location you can either wait for a re-development opportunity (game of chance), amalgamate smaller parcels (slow and uncertain) or get the best locations in emerging destinations where coastal land of size is relatively more available. But then the questions is, are established developers ready to take on risks associated with emerging destinations?

]]>The image above comes from Bali. Are local farmers and land owners annoyed at being approached far too often to sell their land for resort and villa development? A thought crossed my mind after seeing the photo: How much of Asia&#8217;s prime emerging coastal resort land is already in strong hands? By strong hands I mean land owners who don&#8217;t need or want to sell, can keep the property undeveloped for a long time and pass it down through the generations, or develop the property themselves, or sell only at full or rich valuations. That is, if it comes on the market, not at a discount. The downside of land being in strong hands is that owners have no need to sell in a hurry leading to a slower pace of coastal development in places where this happens most. Some examples of coastal resort land in strong hands include Bintan&#8217;s northern coastline owned by a Singapore public listed company, Gallant Venture. Another example is where many of Cambodia&#8217;s islands are in the hands of influential business groups. There&#8217;s no easy way to find out how much of the coastal land is already in strong hands but I&#8217;m sure increasingly more as land owners start recognizing the tourism potential of coastal land &#8211; especially land in prime emerging locations. With more coastal land being in stronger hands we can be sure of two things: (1) the era of highly discounted and cheap land will be over, except for outlying locations in coastline abundant countries like Indonesia and Philippines, and concurrently (2) limited and managed availability of sizable resort sites at recognized emerging destinations. Vietnam&#8217;s Cam Ranh bay is a good example where investors purchased beach front land some time back but building works have not even started. Refer to the March 2014 issue of the Vietnam Resort Report for more on Cam Ranh&#8217;s undeveloped projects. Cheap land era over Due to a more connected informed world and people recognizing Asia&#8217;s growing and traveling middle class, small land owners are becoming knowledgeable about the real value of their land. At the same time large domestic corporates, wealthy families and local business people have acquired over time and on the quiet. Already previously outlying places such as Nusa Lembongan are attracting valuations 8 times higher than a decade ago. Governments, probably owning the largest land bank in undeveloped emerging locations will not likely release land without reasonable compensation which at least offsets some of the infrastructure cost associated with developing the place. Limited preferred locations and large parcels Some of the coastal land reclamation projects coming up in the Asia region are responding to limited or non-existent large development sites in proven destinations and coastal urban centers. Examples include Melaka Gateway, Seri Tanjung Pinang, Manila Bay and the controversial proposal to develop Bali&#8217;s Benoa Bay. Why? Because there&#8217;s more incentive and less risk for large corporates to enter into these projects compared to alternative small infill developments or new projects in emerging locations. Adding to this, urban planners have not or are not increasing development intensity in existing locations as well as inland hinterland. And furthermore, existing fragmented small land ownership makes amalgamation into large parcels very challenging or even impossible. Take for example, TCC Land&#8217;s Cha&#8217;am resort town master plan shown below. It clearly demonstrates the challenge of amalgamating beach front land. The bulk of this project does not have direct access to the beach front except at the two extreme ends of the master plan. &#160; What does this mean for developing large foot print resort hotels? A 300 to 400 room low density large foot print resort will need anything from 10 to 20 hectares. Are large land parcels in good locations on the beach front readily available in today&#8217;s market for a reasonable price? If sizable beach front development land is not available at your preferred location you can either wait for a re-development opportunity (game of chance), amalgamate smaller parcels (slow and uncertain) or get the best locations in emerging destinations where coastal land of size is relatively more available. But then the questions is, are established developers ready to take on risks associated with emerging destinations? Image: Kid Fresh, TCC Land You just finished reading How much of Asia's emerging coastal resort land is in strong hands?! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16561">How much of Asia's emerging coastal resort land is in strong hands?</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/asia-coastal-resort-land-strong-hands/feed/0http://thedevelopmentadvisor.com/asia-coastal-resort-land-strong-hands/Travel Rave 2013: Navigating the Next Phase of Asia’s Tourismhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/dFciwPK6VdQ/FeaturedMapAsia CoastalWed, 12 Mar 2014 19:02:39 PDThttp://thedevelopmentadvisor.com/?p=17448

TravelRave is an annual travel trade festival organized by the Singapore Tourism Board featuring thought-provoking content and influential speakers. Some highlights of the 2013 paper here.

Highlights

Asia is driving international tourism growth

In 2012, Asia Pacific recorded the strongest growth in international tourist arrivals, with a 7% increase. And between 2010 and 20301, the region’s arrivals are expected to increase twice as quickly as those in advanced economies. Leading the charge is China; considering that only 3% of its population own passports, China became the number one source market in the world in 2012, spending US$102 billion on international tourism.

Southeast Asia offers new opportunity

Southeast Asia’s dynamic economies, powered by a rising middle class, are strengthening in- and outbound travel throughout the region. It posted the highest growth among Asian sub-regions, with 9% more arrivals, largely due to continued strong intra-regional demand. Businesses and governments are looking to collaborate in order to leverage existing infrastructure, networks and expertise. Their aim is to help offset fluctuating demands while broadening the region’s ability to grow.

The consumer segment of Asian Millennial Travellers is a growth driver

As Asian economic powerhouses continue their growth trajectory, the emergence of the Asian Millennial Travellers presents significant business opportunities – both from a leisure travel standpoint and a corporate travel perspective. Industry players need to understand how best to target this segment.

Talent remains a challenge

Attracting, retaining and developing high quality talent at all levels remains a top challenge in Asia’s travel and tourism industry. Businesses and education providers must take a more strategic approach to talent and leadership development, especially as the addition of millennials to the talent mix requires additional consideration for management and HR departments.

Charts

Asia Pacific inbound tourism by region of origin

Asia Pacific will continue to grow considerably in both inbound and outbound travel, with most arrivals expected to be intra-regional. Click on all charts to enlarge.

]]>&#160; TravelRave is an annual travel trade festival organized by the Singapore Tourism Board featuring thought-provoking content and influential speakers. Some highlights of the 2013 paper here. &#160; Highlights &#160; Asia is driving international tourism growth In 2012, Asia Pacific recorded the strongest growth in international tourist arrivals, with a 7% increase. And between 2010 and 20301, the region’s arrivals are expected to increase twice as quickly as those in advanced economies. Leading the charge is China; considering that only 3% of its population own passports, China became the number one source market in the world in 2012, spending US$102 billion on international tourism. &#160; Southeast Asia offers new opportunity Southeast Asia’s dynamic economies, powered by a rising middle class, are strengthening in- and outbound travel throughout the region. It posted the highest growth among Asian sub-regions, with 9% more arrivals, largely due to continued strong intra-regional demand. Businesses and governments are looking to collaborate in order to leverage existing infrastructure, networks and expertise. Their aim is to help offset fluctuating demands while broadening the region’s ability to grow. &#160; The consumer segment of Asian Millennial Travellers is a growth driver As Asian economic powerhouses continue their growth trajectory, the emergence of the Asian Millennial Travellers presents significant business opportunities – both from a leisure travel standpoint and a corporate travel perspective. Industry players need to understand how best to target this segment. &#160; Talent remains a challenge Attracting, retaining and developing high quality talent at all levels remains a top challenge in Asia’s travel and tourism industry. Businesses and education providers must take a more strategic approach to talent and leadership development, especially as the addition of millennials to the talent mix requires additional consideration for management and HR departments. &#160; &#160; Charts &#160; Asia Pacific inbound tourism by region of origin Asia Pacific will continue to grow considerably in both inbound and outbound travel, with most arrivals expected to be intra-regional. Click on all charts to enlarge. &#160; International Tourism Expenditure &#160; ASEAN Tourism Expenditure &#160; Travel Industry Labour Supply Shortages You are already seeing evidence of this in Phuket&#8217;s extremely low unemployment figures. Images: Travel Rave &#160; You just finished reading Travel Rave 2013: Navigating the Next Phase of Asia's Tourism! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17448">Travel Rave 2013: Navigating the Next Phase of Asia's Tourism</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/travel-rave-2013-navigating-asia-tourism/feed/0http://thedevelopmentadvisor.com/travel-rave-2013-navigating-asia-tourism/Natuna and Anambas: Center of ASEAN’s 600 million communityhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/JFGQ_OhwtwU/Tourism DevelopmentMapAsia CoastalSun, 09 Mar 2014 22:00:54 PDThttp://thedevelopmentadvisor.com/?p=17268

Unless you’re a leisure diver, sailor or in the fisheries and oil & gas business you’ve probably never heard of the Anambas and Natuna islands. These are two separate and distinct group of islands 200km apart in the South China Sea and part of Indonesia’s Riau Province. CNN covered Anambas very briefly in 2012 when it got listed as one of Asia’s Top 5 Tropical Island Paradises. The largest island of the two groups, Natuna Besar, is almost three times the size of Singapore.

To overcome this, the Natuna administration has allocated funds to build a civil terminal near the existing airport which starts operating in 2015.

Similarly, the Anambas island administration plans a commercial airport in Jemaja district to allow domestic-commercial flight access with gradual links to international flights.

“We are looking for the best format to develop this huge region. Step by step, we believe it is attainable. We believe that an airport is among the infrastructure that will further our area,” Anambas Deputy Regent Abdul Haris said.

Why Anambas & Natuna?

In the post ‘Asia’s Golden Triangle for emerging resort development‘ we mentioned these islands are at one apex of the triangle. The other two being south Vietnam and Sabah / Palawan. This triangle represents the area of greatest coverage within a 3-hour flight time from Asian capital and major cities.

However, if you only consider Anambas / Natuna you come to realize its essentially at the center of a 3-hour flight coverage of ASEAN (above map. large circle approximately 3.0 hour flight, small circle approximately 1.5 hours flight). It not only covers all of ASEAN but also parts of southern China as well.

Don’t you think being at the center of a 600 million community has some tourism advantages?

‘Somewhere at Natuna Sea’

]]>Unless you&#8217;re a leisure diver, sailor or in the fisheries and oil &#38; gas business you&#8217;ve probably never heard of the Anambas and Natuna islands. These are two separate and distinct group of islands 200km apart in the South China Sea and part of Indonesia&#8217;s Riau Province. CNN covered Anambas very briefly in 2012 when it got listed as one of Asia&#8217;s Top 5 Tropical Island Paradises. The largest island of the two groups, Natuna Besar, is almost three times the size of Singapore. &#160; Oil &#38; gas industry Natuna is better known for its oil and gas deposits. According to Offshore Technology the Natuna gas field, discovered in the 1970&#8217;s, is the biggest in Southeast Asia. And one of the world&#8217;s longest gas pipeline at 640km carries Natuna gas from the West Natuna sea to Singapore. &#160; South China Sea disputes With the potential for oil and gas extraction it&#8217;s not surprising countries surrounding the South China Sea have overlapping claims to the waters. China has muscled in on the Paracel and Spratly islands. So far, the Anambas and Natuna islands have been immune. Indonesia is well aware of the threat and starting to protect its Natuna interests. &#160; Air access &#38; development hurdles According to The Jakarta Post there are overseas investors interested in Natuna but have been discouraged by the military operated airport on Natuna Besar. Procedures to get entry permits are confusing and bringing in materials incur additional costs. To overcome this, the Natuna administration has allocated funds to build a civil terminal near the existing airport which starts operating in 2015. Similarly, the Anambas island administration plans a commercial airport in Jemaja district to allow domestic-commercial flight access with gradual links to international flights. “We are looking for the best format to develop this huge region. Step by step, we believe it is attainable. We believe that an airport is among the infrastructure that will further our area,” Anambas Deputy Regent Abdul Haris said. &#160; Why Anambas &#38; Natuna? &#160; In the post &#8216;Asia&#8217;s Golden Triangle for emerging resort development&#8216; we mentioned these islands are at one apex of the triangle. The other two being south Vietnam and Sabah / Palawan. This triangle represents the area of greatest coverage within a 3-hour flight time from Asian capital and major cities. However, if you only consider Anambas / Natuna you come to realize its essentially at the center of a 3-hour flight coverage of ASEAN (above map. large circle approximately 3.0 hour flight, small circle approximately 1.5 hours flight). It not only covers all of ASEAN but also parts of southern China as well. Don&#8217;t you think being at the center of a 600 million community has some tourism advantages? &#160; &#8216;Somewhere at Natuna Sea&#8217; You just finished reading Natuna and Anambas: Center of ASEAN's 600 million community! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17268">Natuna and Anambas: Center of ASEAN's 600 million community</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/natuna-anambas-indonesia-asean-tourism-frontier/feed/04.7102604 107.9709625http://thedevelopmentadvisor.com/natuna-anambas-indonesia-asean-tourism-frontier/Will cruise ships become more compelling ‘resort’ destinations?http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/hbkU20av5fI/Cruise, Yacht, MarinaAsia CoastalMon, 03 Mar 2014 23:00:13 PSThttp://thedevelopmentadvisor.com/?p=17342Royal Caribbean’s Oasis of the Seas

And these cruises cater to the upper end of the travel market. The USD1.4 billion cost to build the Oasis of the Sea works out to be about USD500,000 per room – not exactly mass market by hotel standards.

Although tourism is expanding significantly in Asia the coastal tourism market is also about to get more competitive. It’s not just one coastline competing against another. Now we also have off-shore competition from the cruise industry.

Cruising may not be for everyone, but it does have the allure if you want a greater sense of security, prefer the all-inclusive experience, and want to avoid dealing with touts and taxi drivers that over charge.

Is there something coastal resort destinations or even hotel chains can learn from the cruise business?

Above Deck 17 on the Norwegian Getaway, a father and young son wearing safety harnesses work their way around a ropes course, taking careful steps on a web of narrow beams, winding their fingers through a rope net for balance.

Up ahead, a woman is walking The Plank, the most extreme element of the course — a beam six inches wide that extends 180 feet over the edge of the ship, high above the water. Connected by a harness to an overhead line, she looks down, grinning, asks someone to take her photo, and kicks her leg out to the side, clearly undisturbed by any fear of heights.

Water slides with free falls and 360-degree spirals. A rock-climbing wall, bungee trampoline, miniature golf. They’re all part of the Norwegian Getaway, the new Miami-based cruise ship inaugurated last month. And they’re another round in the cruise industry’s version of an escalating arms race — each line trying to outdo the others with ever-more-exciting recreational features.

Next up is Royal Caribbean’s Quantum of the Seas, set to debut in November with simulated skydiving, bumper cars, circus school and a Ferris-wheel-inspired capsule that raises passengers hundreds of feet.

Travel agents and cruise line executives say it’s rare that a passenger chooses a particular cruise specifically because she wants to walk The Plank or surf FlowRider on Oasis of the Seas or whoosh down Carnival Breeze’s DrainPipe slide. But these features do contribute to the overall perception of how much fun one might have on a new ship.

Increasingly, however, these features are competing with the ports where the ships call: Would it be more fun to spend the day exploring the port city? Or to stay on the ship and not have to fight crowds for space in the surf pool, flume ride, zip line, bowling alley, water slide, miniature golf course, rock-climbing wall, bungee trampoline, The Plank — or whatever the newest recreational feature is?

It’s becoming a happy dilemma for the cruise passenger sailing on a ship topped with a playground at sea.

It’s also a bit of a dilemma for the cruise lines, which want passengers to buy and experience the shore excursions they organize. But they also know that when people stay on the ship in port, their money stays with them — and they spend it in the bars, the shops, maybe the spa or a specialty restaurant.

Kevin Sheehan, CEO of Norwegian Cruise Line, says he has seen more passengers choosing to play on the ship rather than get off in some ports. “We have the stuff to keep them excited when they stay on the ship,” he said.

Royal Caribbean, citing comments by guests on its biggest ships that they don’t have time to explore all the features, schedules only three port calls on seven-day Caribbean cruises by Oasis and Allure of the Seas, compared to the usual four.

“When you build ships like this, the sea days are as special as the port days. . . . One of the major reasons is all the fabulous features the two ships offer. We’re trying to balance the time our guests get to see the ports and these features,” said Lisa Lutoff-Perlo, Royal Caribbean’s executive vice president of operations.

“Clearly we hope they shop in the shops and eat in the specialty restaurants, but we also want them to enjoy the ports, the shore excursions.”

Carnival hasn’t seen a significant change in the number of people staying on board during port calls, said Mark Tamis, that line’s senior vice president of guest operations. Like Lutoff-Perlo, Tamis says Carnival tries to strike a balance.

“We continue to program onboard activities, so the ship is never quiet,” Tamis said. Guests love WaterWorks, Carnival’s pool compex and water park, he said. “It’s not only the people who use it, who want to go down these amazing water slides, but people love to watch.

“It’s important. It just comes down to variety, the feeling that you have so much to do.”

Most stage entertainment takes place at night, while the ship is at sea. The new Carnival Live! concert series, however, which will take place evenings while the ship is in Nassau, Cozumel or Catalina Island, the port stays have been extended and guests will be able to choose — concert or an evening in the destination?

Bob Zweig, a travel agent with Cruise Planners, said lines are building completely different ships today from when he joined the travel industry in 1977. There are more restaurants, more shows, more recreational amenities. “The ships have become entertainment centers,” he said.

He also sees a trend of more people staying on ships in port, and says that benefits the cruise lines. “I truly believe part of their goal is to keep people on the ships. That’s where they make their money.”

The race is mostly among the cruise lines in what the industry calls the mainstream category — Norwegian, Carnival and Royal Caribbean — although the premium lines are also building signature, if more sedate, recreational features: Celebrity with its top-deck lawns; Princess with its over-the-water SeaWalk on its new Royal Princess. And Disney, which doesn’t fit into the usual classifications, has expanded its water park and put an elevated flume ride atop its newer ships.

“For someone who has never cruised before, I don’t know that the ship’s features are the main draw,” Zweig said. “They’re interested in the destination and the price. I tell them that the ships in a lot of cases have become a part of the destination; that’s why ships these days have more sea days.”

Repeat customers are more likely to take the ship itself into consideration, he said. They want to go on the ships they’ve heard about — the biggest or the newest or the ones with the gee-whiz features.

“They might not surf on FlowRider, but it sets a tone, a personality, for the brand that attracts people. It talks about fun, about multi-generational travel, about being in a place on vacation that is unique, that offers things for so many people,” said Lutoff-Perlo. “Innovation and these types of features are really important because they talk about who we are, and who we are is more important than the actual features.”

For that reason, the lines try to retrofit older ships with the most successful features from new ships when it is technologically possible. Norwegian is looking at which popular features from Norwegian Getaway and Norwegian Epic it can add to older ships. Carnival has upgraded many of its older ships with the bigger, splashier elements of WaterWorks as well as its 2.0 Fun Ship program of bars, eateries and entertainment. Royal Caribbean has started retrofitting its Voyager-class ships with FlowRider — Navigator of the Seas emerged from dry dock just a few weeks ago with a newly installed surf pool.

“We have to study the engineering . . . some things are not as easily retrofitted,” Lutoff-Perlo said. “When we introduced FlowRider on our Freedom-class ships, we never thought we would put them on the other classes. But we just did.”

]]>The post from Skift / Miami Herald &#8216;Cruise ships compete with ports for passenger dollars&#8217; got me thinking &#8211; Are cruise ships more compelling &#8216;resort&#8217; destinations compared to their on-land counterparts? In earlier eras, on-ship attractions like casinos, swimming pools and the evening shows were common. Now you&#8217;ve got shopping streets and a wide range of attractions keeping guests entertained all day. On top of this the number of rooms on mega ships can rival smaller emerging destinations. For example, one of the two largest cruise ships in the world, Oasis of the Seas, has 2,700 rooms. Destinations like Bintan Resorts has only 1,300 rooms as of 2013 while Lombok has 2,400 rooms in the 3 to 5 star category in 2012. And these cruises cater to the upper end of the travel market. The USD1.4 billion cost to build the Oasis of the Sea works out to be about USD500,000 per room &#8211; not exactly mass market by hotel standards. And the trend for large ships will not be limited to the Caribbean. Asia&#8217;s home-grown cruise line Star Cruises has commissioned two 150,000 ton mega ships which are only a step below the scale of the 225,000 ton Oasis of the Sea and its sister ship Allure of the Sea. Furthermore, Royal Caribbean&#8217;s (the operator of the world&#8217;s two largest cruise ships) MOU to develop a cruise port in Malacca signals the Asian cruise market is about to get more competitive. Imagine if 10 mega ships operate in Asian waters, it&#8217;s equivalent to a major 25,000 room destination. In comparison by 2013 Phuket had an estimated 45,000 rooms of which close to 20,000 are in the luxury and upscale segment. Although tourism is expanding significantly in Asia the coastal tourism market is also about to get more competitive. It&#8217;s not just one coastline competing against another. Now we also have off-shore competition from the cruise industry. Cruising may not be for everyone, but it does have the allure if you want a greater sense of security, prefer the all-inclusive experience, and want to avoid dealing with touts and taxi drivers that over charge. Is there something coastal resort destinations or even hotel chains can learn from the cruise business? Via Skift / Miami Herald Above Deck 17 on the Norwegian Getaway, a father and young son wearing safety harnesses work their way around a ropes course, taking careful steps on a web of narrow beams, winding their fingers through a rope net for balance. Up ahead, a woman is walking The Plank, the most extreme element of the course — a beam six inches wide that extends 180 feet over the edge of the ship, high above the water. Connected by a harness to an overhead line, she looks down, grinning, asks someone to take her photo, and kicks her leg out to the side, clearly undisturbed by any fear of heights. Water slides with free falls and 360-degree spirals. A rock-climbing wall, bungee trampoline, miniature golf. They’re all part of the Norwegian Getaway, the new Miami-based cruise ship inaugurated last month. And they’re another round in the cruise industry’s version of an escalating arms race — each line trying to outdo the others with ever-more-exciting recreational features. Next up is Royal Caribbean’s Quantum of the Seas, set to debut in November with simulated skydiving, bumper cars, circus school and a Ferris-wheel-inspired capsule that raises passengers hundreds of feet. Travel agents and cruise line executives say it’s rare that a passenger chooses a particular cruise specifically because she wants to walk The Plank or surf FlowRider on Oasis of the Seas or whoosh down Carnival Breeze’s DrainPipe slide. But these features do contribute to the overall perception of how much fun one might have on a new ship. Increasingly, however, these features are competing with the ports where the ships call: Would it be more fun to spend the day exploring the port city? Or to stay on the ship and not have to fight crowds for space in the surf pool, flume ride, zip line, bowling alley, water slide, miniature golf course, rock-climbing wall, bungee trampoline, The Plank — or whatever the newest recreational feature is? It’s becoming a happy dilemma for the cruise passenger sailing on a ship topped with a playground at sea. It’s also a bit of a dilemma for the cruise lines, which want passengers to buy and experience the shore excursions they organize. But they also know that when people stay on the ship in port, their money stays with them — and they spend it in the bars, the shops, maybe the spa or a specialty restaurant. Kevin Sheehan, CEO of Norwegian Cruise Line, says he has seen more passengers choosing to play on the ship rather than get off in some ports. “We have the stuff to keep them excited when they stay on the ship,” he said. Royal Caribbean, citing comments by guests on its biggest ships that they don’t have time to explore all the features, schedules only three port calls on seven-day Caribbean cruises by Oasis and Allure of the Seas, compared to the usual four. “When you build ships like this, the sea days are as special as the port days. . . . One of the major reasons is all the fabulous features the two ships offer. We’re trying to balance the time our guests get to see the ports and these features,” said Lisa Lutoff-Perlo, Royal Caribbean’s executive vice president of operations. “Clearly we hope they shop in the shops and eat in the specialty restaurants, but we also want them to enjoy the ports, the shore excursions.” Carnival hasn’t seen a significant change in the number of people staying on board during port calls, said Mark Tamis, that line’s senior vice president of guest operations. Like Lutoff-Perlo, Tamis says Carnival tries to strike a balance. “We continue to program onboard activities, so the ship is never quiet,” Tamis said. Guests love WaterWorks, Carnival’s pool compex and water park, he said. “It’s not only the people who use it, who want to go down these amazing water slides, but people love to watch. “It’s important. It just comes down to variety, the feeling that you have so much to do.” Most stage entertainment takes place at night, while the ship is at sea. The new Carnival Live! concert series, however, which will take place evenings while the ship is in Nassau, Cozumel or Catalina Island, the port stays have been extended and guests will be able to choose — concert or an evening in the destination? Bob Zweig, a travel agent with Cruise Planners, said lines are building completely different ships today from when he joined the travel industry in 1977. There are more restaurants, more shows, more recreational amenities. “The ships have become entertainment centers,” he said. He also sees a trend of more people staying on ships in port, and says that benefits the cruise lines. “I truly believe part of their goal is to keep people on the ships. That’s where they make their money.” The race is mostly among the cruise lines in what the industry calls the mainstream category — Norwegian, Carnival and Royal Caribbean — although the premium lines are also building signature, if more sedate, recreational features: Celebrity with its top-deck lawns; Princess with its over-the-water SeaWalk on its new Royal Princess. And Disney, which doesn’t fit into the usual classifications, has expanded its water park and put an elevated flume ride atop its newer ships. “For someone who has never cruised before, I don’t know that the ship’s features are the main draw,” Zweig said. “They’re interested in the destination and the price. I tell them that the ships in a lot of cases have become a part of the destination; that’s why ships these days have more sea days.” Repeat customers are more likely to take the ship itself into consideration, he said. They want to go on the ships they’ve heard about — the biggest or the newest or the ones with the gee-whiz features. “They might not surf on FlowRider, but it sets a tone, a personality, for the brand that attracts people. It talks about fun, about multi-generational travel, about being in a place on vacation that is unique, that offers things for so many people,” said Lutoff-Perlo. “Innovation and these types of features are really important because they talk about who we are, and who we are is more important than the actual features.” For that reason, the lines try to retrofit older ships with the most successful features from new ships when it is technologically possible. Norwegian is looking at which popular features from Norwegian Getaway and Norwegian Epic it can add to older ships. Carnival has upgraded many of its older ships with the bigger, splashier elements of WaterWorks as well as its 2.0 Fun Ship program of bars, eateries and entertainment. Royal Caribbean has started retrofitting its Voyager-class ships with FlowRider — Navigator of the Seas emerged from dry dock just a few weeks ago with a newly installed surf pool. “We have to study the engineering . . . some things are not as easily retrofitted,” Lutoff-Perlo said. “When we introduced FlowRider on our Freedom-class ships, we never thought we would put them on the other classes. But we just did.” Images: Royal Caribbean You just finished reading Will cruise ships become more compelling 'resort' destinations?! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17342">Will cruise ships become more compelling 'resort' destinations?</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/cruise-ships-compelling-resort-destinations/feed/0http://thedevelopmentadvisor.com/cruise-ships-compelling-resort-destinations/Vietnam: An introduction to Ninh Chu Bayhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/0PDMXJM4k1Q/Resort DevelopmentAsia CoastalThu, 27 Feb 2014 04:48:30 PSThttp://thedevelopmentadvisor.com/?p=17290Click to enlarge

Ninh Chu Bay is a rapidly growing tourism destination offering a tremendous opportunity for resort and entertainment investment. Tourism demand is increasing much faster than supply; creating very high occupancy rates for resorts. Domestic tourism grew at over 30% in the first nine months of 2013 compared to same period year before. Land prices are still much lower than other locations, providing much value.

Located between Phan Thiet and Nha Trang – in the last two years the number of foreigners visiting Ninh Chu bay has gone from basically nothing to 500 per night. Pegas Touristik’s customers booked about 15,000 nights of resort rooms in one month (Jan 2014). That is about 70% occupancy rate for all the resorts from just one customer. Anh Duong executives, say they would bring many more customers to Ninh Chu Bay if more and better accommodations were available.

The bay has 7 resorts (all locally owned and operated), but none of them focus on the foreign market. They offer similar bad food, terrible service, and no activities or amenities. Pegas/Anh Duong is frustrated with the lack of attention given to their customers. A huge opportunity is just waiting for an investor that wants to provide good food, good service, and fun to both foreign customers and discerning Vietnamese. As we have seen in Nha Trang (The Sailing Club) and Phan Thiet (Coco Beach Resort, Victoria), first mover advantages exist if you can establish a brand and get into the guide books as “the place to go”. Now is that time for Ninh Chu Bay.

Location

Adjacent to the city of Phan Rang – the capital of Ninh Thuan Province.

In the center of the tourism triangle of Phan Thiet, Dalat, and Nha Trang.

Getting There

By Plane

Phan Rang shares the Cam Ranh International Airport with Nha Trang. It is a 60km drive from the airport to Ninh Chu Bay and it takes one hour. This is equivalent to the time it takes to the north side of Nha Trang.

By Train

The Thap Cham train station is actually in Phan Rang. It’s about 10km from the beach. It is about a 7 hr train ride from Saigon.

By Car/Bus

Highway 1A runs through Phan Rang and it takes less than 5 minutes to get to the beach. Driving to Phan Rang takes about 7 hours from Saigon and less than 2 hours from Nha Trang.

Demand for Rooms (what others are saying)

“Ninh Thuan experienced 72,300 Russian visitors since the beginning of 2013. The area is estimated to draw more 30,000 Russian during the peak tourist season. Visitors often stay for about 14 days.” (Link)

Note: While most articles talk about Ninh Thuan tourism, Ninh Chu Bay/Phan Rang is by far the most popular spot for tourists to stay. In fact, other than the Amano’i in Vinh Hy Bay and a couple small hotels in CaNa, Ninh Chu Bay/Phan Rang is the only place.

Hotel Room Supply

Despite steady and rapid growth in tourists, new supply is not coming onto the market other than mini-hotels near the beach. Aniise Villa was the last resort to open (April 2011).

During the Russian high-season, Pegas’ customers alone account for nearly 70% occupancy in the bay.

Even though the number of foreigners is increasing, the local market is still much greater and the summer is still considered the high-season.

Beach & Ocean

No river runs into the bay (unlike Nha Trang and Phan Thiet) so the water is clean.

Fishing boats are moored in an estuary, so their waste products do not go into the bay.

10 km of sandy beach shaped in a crescent.

The beach is safe for swimming. No riptide. Waves are not big except for in December and January.

Resorts along the beach all have waste-water treatment.

The bay is protected and has no erosion problems.

Activities & Attractions

Wind Sports (Kite Surfing)

Just like Phan Thiet/Mui Ne, Ninh Chu Bay has consistent strong winds every afternoon which are perfect for kite surfing. Already, Kite Surf Vietnam and other Mui Ne companies are bringing their customers to Ninh Chu Bay (link). In Mui Ne, up to 150 kite surfers can be in the water at once. This creates unsafe conditions, is difficult for beginners, and not fun for experts. In the last few months, Ninh Chu Bay has received some of the spill-over. Up to 50 kite surfers a day now stay.

Pagodas and Temples

Po Klang Garai

Located next to the train station, this 700 year old temple is in great shape and is still used for ceremonies by the local Cham people. Buildings at the base have historical information and gift shops.

Monastery Complex on a Hill

A wonderful new complex of pagodas, Buddha statues, and a monastery; all connected by walking paths that lead up to the top of a hill overlooking Ninh Chu Bay. The views are spectacular and it is a short walk from most of the resorts.

Vinh Hy Bay and the New Coastal Road

Just 20 km north of Ninh Chu Bay, visitors can go to beautiful Vinh Hy Bay via a new road. Aman Resort group chose this scenic fishing village for their first Vietnam resort.

Continuing north along the road will bring you to some of the most beautiful, unspoiled beaches in Vietnam. The just completed road opens the Nui Chua National Forest up for exploration for the first time. Ultimately the road re-connects with Highway 1 near the Cam Ranh Internatioinal Airport.

April 16 Park

One kilometer from the beach, a spacious park was built to be a community gathering place. On beautiful evenings (which is just about every evening), it seems as if the entire city of Phan Rang goes to the park to eat and socialize. Food and drink vendors sell all the famous local dishes.

The park includes a beautiful, modern museum that will showcase local Cham items and other relics.

Climate

Ninh Chu Bay has the best weather in Vietnam and perhaps all of Southeast Asia. The area has a “Mediterranean climate” as confirmed by its famous grapes.

Least amount of rain in Vietnam.

Most sunny days in Vietnam.

Mostly unaffected by typhoons.

Cooler temperatures in the summers than all other coastal locations from Hue to the south.

Strong consistent wind all year round – perfect for wind sports.

Other considerations

Government

Ninh Thuan Province has preferential policies for investors. Lower tax rates, tax holidays, and reduced or no land lease payments.

After hiring The Monitor Group to help establish the Economic Development Office (EDO) in 2012, Ninh Thuan moved up 28 spots on the VCCI Provincial Competitiveness Index (18th). (link)

Future Development

New Flights from China to Cam Ranh

Throughout the world, hospitality companies are preparing for the huge increase in Chinese tourists. Cam Ranh International Airport is perfectly positioned to receive these new middle-class consumers looking for a reasonably priced, warm weather beach vacations. The airport is scheduled to be upgraded by 2020, but it is already beginning to receive Chinese tourists. During Tet (2014), the airport received 14 flights a week from Hong Kong and China.

The Re-opening of the Phan Rang to Dalat Railroad

Before the war, a railway linked Vietnam’s coast to the highland via the Phan Rang to Dalat Railroad. Plans have been made and funding received to put this railroad back into operation. When completed, Phan Rang will become the gateway to the south central highlands.

]]>Ninh Chu Bay is a rapidly growing tourism destination offering a tremendous opportunity for resort and entertainment investment. Tourism demand is increasing much faster than supply; creating very high occupancy rates for resorts. Domestic tourism grew at over 30% in the first nine months of 2013 compared to same period year before. Land prices are still much lower than other locations, providing much value. Located between Phan Thiet and Nha Trang &#8211; in the last two years the number of foreigners visiting Ninh Chu bay has gone from basically nothing to 500 per night. Pegas Touristik’s customers booked about 15,000 nights of resort rooms in one month (Jan 2014). That is about 70% occupancy rate for all the resorts from just one customer. Anh Duong executives, say they would bring many more customers to Ninh Chu Bay if more and better accommodations were available. The bay has 7 resorts (all locally owned and operated), but none of them focus on the foreign market. They offer similar bad food, terrible service, and no activities or amenities. Pegas/Anh Duong is frustrated with the lack of attention given to their customers. A huge opportunity is just waiting for an investor that wants to provide good food, good service, and fun to both foreign customers and discerning Vietnamese. As we have seen in Nha Trang (The Sailing Club) and Phan Thiet (Coco Beach Resort, Victoria), first mover advantages exist if you can establish a brand and get into the guide books as “the place to go”. Now is that time for Ninh Chu Bay. &#160; Location Adjacent to the city of Phan Rang – the capital of Ninh Thuan Province. In the center of the tourism triangle of Phan Thiet, Dalat, and Nha Trang. &#160; Getting There By Plane Phan Rang shares the Cam Ranh International Airport with Nha Trang. It is a 60km drive from the airport to Ninh Chu Bay and it takes one hour. This is equivalent to the time it takes to the north side of Nha Trang. By Train The Thap Cham train station is actually in Phan Rang. It’s about 10km from the beach. It is about a 7 hr train ride from Saigon. By Car/Bus Highway 1A runs through Phan Rang and it takes less than 5 minutes to get to the beach. Driving to Phan Rang takes about 7 hours from Saigon and less than 2 hours from Nha Trang. &#160; Demand for Rooms (what others are saying) “Ninh Thuan experienced 72,300 Russian visitors since the beginning of 2013. The area is estimated to draw more 30,000 Russian during the peak tourist season. Visitors often stay for about 14 days.” (Link) “Danang, Khanh Hoa, Ninh Thuan and Quang Nam are among the localities seeing high growth rates with 20.5%, 16%, 30.6% and 30.2% respectively.” -2013- (Link) “Ninh Thuan province welcomed over 40,000 tourists from January 28-February 5, up 15 percent against the same period last year.” (Link) “In 2013, the province received 1.1 million tourists” (Link) Note: While most articles talk about Ninh Thuan tourism, Ninh Chu Bay/Phan Rang is by far the most popular spot for tourists to stay. In fact, other than the Amano’i in Vinh Hy Bay and a couple small hotels in CaNa, Ninh Chu Bay/Phan Rang is the only place. &#160; Hotel Room Supply Despite steady and rapid growth in tourists, new supply is not coming onto the market other than mini-hotels near the beach. Aniise Villa was the last resort to open (April 2011). During the Russian high-season, Pegas’ customers alone account for nearly 70% occupancy in the bay. Even though the number of foreigners is increasing, the local market is still much greater and the summer is still considered the high-season. &#160; Beach &#38; Ocean Ninh Chu Bay voted one of Vietnam’s nine most beautiful beaches (link) No river runs into the bay (unlike Nha Trang and Phan Thiet) so the water is clean. Fishing boats are moored in an estuary, so their waste products do not go into the bay. 10 km of sandy beach shaped in a crescent. The beach is safe for swimming. No riptide. Waves are not big except for in December and January. Resorts along the beach all have waste-water treatment. The bay is protected and has no erosion problems. &#160; Activities &#38; Attractions &#160; Wind Sports (Kite Surfing) Just like Phan Thiet/Mui Ne, Ninh Chu Bay has consistent strong winds every afternoon which are perfect for kite surfing. Already, Kite Surf Vietnam and other Mui Ne companies are bringing their customers to Ninh Chu Bay (link). In Mui Ne, up to 150 kite surfers can be in the water at once. This creates unsafe conditions, is difficult for beginners, and not fun for experts. In the last few months, Ninh Chu Bay has received some of the spill-over. Up to 50 kite surfers a day now stay. Pagodas and Temples Po Klang Garai Located next to the train station, this 700 year old temple is in great shape and is still used for ceremonies by the local Cham people. Buildings at the base have historical information and gift shops. Monastery Complex on a Hill A wonderful new complex of pagodas, Buddha statues, and a monastery; all connected by walking paths that lead up to the top of a hill overlooking Ninh Chu Bay. The views are spectacular and it is a short walk from most of the resorts. &#160; Vinh Hy Bay and the New Coastal Road Just 20 km north of Ninh Chu Bay, visitors can go to beautiful Vinh Hy Bay via a new road. Aman Resort group chose this scenic fishing village for their first Vietnam resort. Continuing north along the road will bring you to some of the most beautiful, unspoiled beaches in Vietnam. The just completed road opens the Nui Chua National Forest up for exploration for the first time. Ultimately the road re-connects with Highway 1 near the Cam Ranh Internatioinal Airport. April 16 Park One kilometer from the beach, a spacious park was built to be a community gathering place. On beautiful evenings (which is just about every evening), it seems as if the entire city of Phan Rang goes to the park to eat and socialize. Food and drink vendors sell all the famous local dishes. The park includes a beautiful, modern museum that will showcase local Cham items and other relics. &#160; Climate Ninh Chu Bay has the best weather in Vietnam and perhaps all of Southeast Asia. The area has a “Mediterranean climate” as confirmed by its famous grapes. Least amount of rain in Vietnam. Most sunny days in Vietnam. Mostly unaffected by typhoons. Cooler temperatures in the summers than all other coastal locations from Hue to the south. Strong consistent wind all year round &#8211; perfect for wind sports. &#160; Other considerations Government Ninh Thuan Province has preferential policies for investors. Lower tax rates, tax holidays, and reduced or no land lease payments. After hiring The Monitor Group to help establish the Economic Development Office (EDO) in 2012, Ninh Thuan moved up 28 spots on the VCCI Provincial Competitiveness Index (18th). (link) &#160; Future Development New Flights from China to Cam Ranh Throughout the world, hospitality companies are preparing for the huge increase in Chinese tourists. Cam Ranh International Airport is perfectly positioned to receive these new middle-class consumers looking for a reasonably priced, warm weather beach vacations. The airport is scheduled to be upgraded by 2020, but it is already beginning to receive Chinese tourists. During Tet (2014), the airport received 14 flights a week from Hong Kong and China. The Re-opening of the Phan Rang to Dalat Railroad Before the war, a railway linked Vietnam’s coast to the highland via the Phan Rang to Dalat Railroad. Plans have been made and funding received to put this railroad back into operation. When completed, Phan Rang will become the gateway to the south central highlands. For more information on investments in Ninh Chu Bay contact MGT Management Consulting. You just finished reading Vietnam: An introduction to Ninh Chu Bay! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17290">Vietnam: An introduction to Ninh Chu Bay</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/vietnam-introduction-ninh-chu-bay/feed/011.6077452 109.0380783http://thedevelopmentadvisor.com/vietnam-introduction-ninh-chu-bay/Island clusters in the South China Sea – Disputed and Nonhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/g4g4LodkEtc/Tourism DevelopmentMapAsia CoastalFri, 21 Feb 2014 23:02:20 PSThttp://thedevelopmentadvisor.com/?p=17254

A discussion on Asia coastal tourism destination development will be incomplete without briefly mentioning the islands in the South China Sea – disputed and non-disputed.

Disputed islands

There are two clusters of disputed islands – Paracel (Xisha) islands and Spratly (Nansha) islands.

Non-disputed islands

There are also two clusters of non-disputed islands – Anambas islands and Natuna islands. In the map above these two clusters are denoted as ‘Kepulauan Natuna’ at the bottom left corner. They are part of the Riau Province of Indonesia.

The larger cluster known as Natuna has a main island with a land area almost three times larger than Singapore. These islands are known more for their oil and gas fields than for tourism.

]]>A discussion on Asia coastal tourism destination development will be incomplete without briefly mentioning the islands in the South China Sea &#8211; disputed and non-disputed. Disputed islands There are two clusters of disputed islands &#8211; Paracel (Xisha) islands and Spratly (Nansha) islands. Aside from China starting to offer tours to the Paracel islands the only coastal development here is of the military sort. A Google Map scan fails to show many sizable islands worthy of resort development unlike the Maldives. If you&#8217;d like to find out more about the disputes there&#8217;s a page in Wikipedia called &#8220;Nine Dotted (Dashed) Line&#8221;. Non-disputed islands There are also two clusters of non-disputed islands &#8211; Anambas islands and Natuna islands. In the map above these two clusters are denoted as &#8216;Kepulauan Natuna&#8217; at the bottom left corner. They are part of the Riau Province of Indonesia. The larger cluster known as Natuna has a main island with a land area almost three times larger than Singapore. These islands are known more for their oil and gas fields than for tourism. From a tourism standpoint we think these islands offer an interesting potential due to their location. We discussed how these islands are within a 3 hour flight time from many Asian cities. Images: Wikipedia, China Daily Mail, Premier Oil You just finished reading Island clusters in the South China Sea - Disputed and Non ! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17254">Island clusters in the South China Sea - Disputed and Non </a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/island-clusters-south-china-sea/feed/0http://thedevelopmentadvisor.com/island-clusters-south-china-sea/Food: The critical success factor for emerging Asian resort destinationshttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/CwIKq5mbvFE/Tourism DevelopmentFeaturedAsia CoastalThu, 20 Feb 2014 04:03:05 PSThttp://thedevelopmentadvisor.com/?p=17235

A survey of traveler behavior has revealed that for over a third (36 per cent) of leisure travelers in APAC, food and drink is the critical determining factor in where they choose to travel.

Some key findings for Singapore were:

— 30 per cent of Singaporeans said that food is a ‘critical factor’ when deciding where to visit

— 77 per cent of Singaporeans say they seek out unique culinary experiences when they travel

— 92 per cent of Singaporeans make a point of trying famous local dishes when they travel

— 96 per cent seek out local street food when visiting a destination

Surveying 2,700 leisure travelers from across nine countries in APAC, the study, commissioned by leading global hospitality company, Hilton Worldwide, found that only five per cent of respondents said that food and drink was not a consideration when deciding where to holiday.

“A country or city’s culinary offering is clearly a big driver as to where leisure travelers in Asia Pacific choose to travel,” said Markus Schueller, vice president for Food & Beverage Operations, Asia Pacific at Hilton Worldwide.

“Appreciation for food and drink continues to grow, and this has significant implications for the hospitality industry. Gone are the days where hotels were simply places to rest. Today, they have to be food and drink destinations themselves, providing guests with the services and information that fit with the increased emphasis they place on quality culinary experiences when they travel.”

Taking in responses from leisure travelers in Australia, mainland China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Singapore and Thailand, results showed that food was also a priority when it came to holiday spend, with 43 per cent of respondents allocating up to half of their total holiday budget for food and drink.

According to the survey, food also influences what activities took priority in the minds of travelers when on vacation, with 90 per cent of respondents going out of their way to try famous local dishes. 87 per cent said they seek out local street food and 79 per cent look for culturally unique food experiences like culinary festivals and food markets when visiting a destination.

When asked to identify their favorite culinary destination in APAC, Japan topped the list with the highest number of votes from leisure travelers across the region, followed closely by Thailand and Taiwan in joint second place. Votes also revealed Korea, Singapore and Hong Kong as sharing third place position as favorite culinary destinations. Results also showed that for 19 per cent of respondents, food experiences within their home country were favored over other destinations in the region. This was highest for respondents from Indonesia, Australia, Korea, Japan, and Malaysia.

Singaporean travelers voted Taiwan, followed by Hong Kong and Japan, as their favorite culinary destinations to visit in the region.

When asked what they looked for in an excellent culinary destination, 49 per cent of respondents agreed that variety of cuisine is most important, followed by unique culinary offerings, including destinations with unusual local delicacies and specialities, and cultural food experiences like food markets and festivals. Travelers from Singapore most valued variety and unique local cuisine in a culinary destination.

Schueller added, “Today’s modern culinary traveler is looking for authentic food experiences and activities which offer both quality and variety. This is something we take very seriously, working closely with our properties across Asia Pacific to develop and deliver unique dining concepts that provide guests with exceptional and memorable experiences.”

]]>Food: local, variety, competitively priced and out-of-hotel dining experience. An essential element of the tourism eco-system for any successful destination if you are targeting the Asian travel market. Keep this in mind if you are master planning or developing any new resort destination. As the survey below states it&#8217;s the critical determining factor for travelers when selecting a destination. Via ETN News: A survey of traveler behavior has revealed that for over a third (36 per cent) of leisure travelers in APAC, food and drink is the critical determining factor in where they choose to travel. Some key findings for Singapore were: &#8212; 30 per cent of Singaporeans said that food is a &#8216;critical factor&#8217; when deciding where to visit &#8212; 77 per cent of Singaporeans say they seek out unique culinary experiences when they travel &#8212; 92 per cent of Singaporeans make a point of trying famous local dishes when they travel &#8212; 96 per cent seek out local street food when visiting a destination Surveying 2,700 leisure travelers from across nine countries in APAC, the study, commissioned by leading global hospitality company, Hilton Worldwide, found that only five per cent of respondents said that food and drink was not a consideration when deciding where to holiday. &#8220;A country or city&#8217;s culinary offering is clearly a big driver as to where leisure travelers in Asia Pacific choose to travel,&#8221; said Markus Schueller, vice president for Food &#38; Beverage Operations, Asia Pacific at Hilton Worldwide. &#8220;Appreciation for food and drink continues to grow, and this has significant implications for the hospitality industry. Gone are the days where hotels were simply places to rest. Today, they have to be food and drink destinations themselves, providing guests with the services and information that fit with the increased emphasis they place on quality culinary experiences when they travel.&#8221; Taking in responses from leisure travelers in Australia, mainland China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Singapore and Thailand, results showed that food was also a priority when it came to holiday spend, with 43 per cent of respondents allocating up to half of their total holiday budget for food and drink. According to the survey, food also influences what activities took priority in the minds of travelers when on vacation, with 90 per cent of respondents going out of their way to try famous local dishes. 87 per cent said they seek out local street food and 79 per cent look for culturally unique food experiences like culinary festivals and food markets when visiting a destination. When asked to identify their favorite culinary destination in APAC, Japan topped the list with the highest number of votes from leisure travelers across the region, followed closely by Thailand and Taiwan in joint second place. Votes also revealed Korea, Singapore and Hong Kong as sharing third place position as favorite culinary destinations. Results also showed that for 19 per cent of respondents, food experiences within their home country were favored over other destinations in the region. This was highest for respondents from Indonesia, Australia, Korea, Japan, and Malaysia. Singaporean travelers voted Taiwan, followed by Hong Kong and Japan, as their favorite culinary destinations to visit in the region. When asked what they looked for in an excellent culinary destination, 49 per cent of respondents agreed that variety of cuisine is most important, followed by unique culinary offerings, including destinations with unusual local delicacies and specialities, and cultural food experiences like food markets and festivals. Travelers from Singapore most valued variety and unique local cuisine in a culinary destination. Schueller added, &#8220;Today&#8217;s modern culinary traveler is looking for authentic food experiences and activities which offer both quality and variety. This is something we take very seriously, working closely with our properties across Asia Pacific to develop and deliver unique dining concepts that provide guests with exceptional and memorable experiences.&#8221; Image: William Cho You just finished reading Food: The critical success factor for emerging Asian resort destinations! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17235">Food: The critical success factor for emerging Asian resort destinations</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/food-success-factor-asian-resort-destination/feed/0http://thedevelopmentadvisor.com/food-success-factor-asian-resort-destination/Malaysia: KAJ develops Melaka Gatewayhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/cM72kS2bMpQ/Cruise, Yacht, MarinaLand DevelopmentAsia CoastalSun, 16 Feb 2014 23:00:43 PSThttp://thedevelopmentadvisor.com/?p=17055Click on image to visit Melaka Gateway.

What caught our attention here involves Royal Caribbean Cruises in the joint development of the cruise terminal.

The Melaka Gateway is a project led by KAJ Development. If you’ve not heard of KAJ, according to Malaysia’s business weekly The Edge, “KAJ Development Sdn Bhd is a construction and engineering with a proven track record in Melaka.”. And The Sun Daily says KAJ is predominantly a construction company and now manages Malacca Zoo and Bird Park. It had earlier revamped the Malacca River.

On the sea-side

Melaka International Cruise Terminal

A new ferry terminal

South East Asia’s biggest marina with up to 1,000 berths

Maintenance and repair facility for mega yachts

The Sun Daily, “Its (cruise) marina terminal will be the largest in Asia, tapping into the growing number of cruise ships plying the route which currently do not stop at Malacca due to lack of facilities.”

Rinani International Aero Marine which is a Korean-Malaysian joint venture (JV),

Kasen International (China)

Some thoughts

Ideal Location

Malacca is ideally located half way between Kuala Lumpur and Singapore along the North-South highway. The two circles below have a 150km radius (approximately 2 hours driving distance). Not surprising Malacca has always been a domestic destination for both countries. A good quality domestic coastal tourism development here makes sense considering there are not many alternatives close to both capital cities at the moment.

What’s the land development approach?

We can see the reasons for further development of Malacca. However, should this be a land reclamation project or a change of land use around Malacca to allow for greater intensity? Unfortunately, without knowing the zoning and planning constraints, as well as land ownership structure and the economics of land reclamation, its difficult to form an opinion. However, there is one thing to keep in mind. At the macro level, Malaysia has a very low population to coastline ratio compared to many of its neighbors.

Will there be too many marinas?

According to conclusions reached by the Maritime Institute of Malaysia (MIM) in a 2007 paper titled “An assessment of the development of marinas and boating activities in Malaysia”, the country has enough marinas to cater to existing number of boats as well as the number of visiting international boaters. And based on existing berths and planned marinas coming on stream, local marinas have the capacity to absorb more arrivals in the future.

MIM further adds, “It will be interesting to see how Malaysian marinas are going to compete with one another in the small domestic market and with international marinas in an increasingly competitive market to attract boaters and their tourist dollars.”

Is the marina and boating market much different today as compared to when the paper first came out? If “there are over 1,000 berths (wet and dry) available at the top six marinas in the country” will “South East Asia’s biggest marina with up to 1,000 berths (at Melaka Gateway)” create a demand-supply imbalance?

We are very far from experts about the cruise industry but it’s still interesting to note when one of the world’s largest cruise company takes a stake in developing a cruise port in Asia. What does it mean? Will we see more examples of this happening in future? Can someone with cruise industry experience help answer this question.

]]>Beside the coastal real estate developments in Iskandar Malaysia here is another Malaysian coastal project in Melaka (Malacca) known as Melaka Gateway. Along with Mandalika, Bintan Resorts, Koh Rong, Vung Ro Bay this is another ambitious coastal development project in Southeast Asia at the moment. What caught our attention here involves Royal Caribbean Cruises in the joint development of the cruise terminal. The Melaka Gateway is a project led by KAJ Development. If you&#8217;ve not heard of KAJ, according to Malaysia&#8217;s business weekly The Edge, &#8220;KAJ Development Sdn Bhd is a construction and engineering with a proven track record in Melaka.&#8221;. And The Sun Daily says KAJ is predominantly a construction company and now manages Malacca Zoo and Bird Park. It had earlier revamped the Malacca River. Other Malaysian coastal projects and initiatives we&#8217;ve covered include two other offshore land reclamation developments &#8211; Marina Island Pangkor and the aborted Mersing Laguna. And also Sabah&#8217;s Kinabalu Gold Coast and Desaru Coast. Location Map &#160; From Berita Harian News &#160; What&#8217;s planned? The land size of the project is 246 hectares comprising both existing and reclaimed land. Not a large area of itself except for the fact a high proportion of the area will be reclaimed from the sea. What&#8217;s included in the master plan? On the land side 15km of premier waterfront addresses for mainly high-rise luxury condominiums Entertainment hub (Phase 1 of the development) Theme park Exclusive marina villas with private jetties The iconic Gateway Beacon Tower housing 7-star hotel and luxury apartments Health and wellness development &#160; On the sea-side Melaka International Cruise Terminal A new ferry terminal South East Asia’s biggest marina with up to 1,000 berths Maintenance and repair facility for mega yachts The Sun Daily, &#8220;Its (cruise) marina terminal will be the largest in Asia, tapping into the growing number of cruise ships plying the route which currently do not stop at Malacca due to lack of facilities.&#8221; &#160; Early participants KAJ Development (master developer) Skyye Group (Italy) will bring in 200 branded goods shops Royal Caribbean Cruise will jointly develop the cruise terminal with KAJD (3 ship capacity). TRE Development has acquired six acres of land for RM88 million Rinani International Aero Marine which is a Korean-Malaysian joint venture (JV), Kasen International (China) &#160; Some thoughts &#160; Ideal Location Malacca is ideally located half way between Kuala Lumpur and Singapore along the North-South highway. The two circles below have a 150km radius (approximately 2 hours driving distance). Not surprising Malacca has always been a domestic destination for both countries. A good quality domestic coastal tourism development here makes sense considering there are not many alternatives close to both capital cities at the moment. &#160; What&#8217;s the land development approach? We can see the reasons for further development of Malacca. However, should this be a land reclamation project or a change of land use around Malacca to allow for greater intensity? Unfortunately, without knowing the zoning and planning constraints, as well as land ownership structure and the economics of land reclamation, its difficult to form an opinion. However, there is one thing to keep in mind. At the macro level, Malaysia has a very low population to coastline ratio compared to many of its neighbors. &#160; Will there be too many marinas? There are already a fair number of marinas along the west coast of peninsula Malaysia. These vary in size and quality. According to conclusions reached by the Maritime Institute of Malaysia (MIM) in a 2007 paper titled &#8220;An assessment of the development of marinas and boating activities in Malaysia&#8221;, the country has enough marinas to cater to existing number of boats as well as the number of visiting international boaters. And based on existing berths and planned marinas coming on stream, local marinas have the capacity to absorb more arrivals in the future. MIM further adds, &#8220;It will be interesting to see how Malaysian marinas are going to compete with one another in the small domestic market and with international marinas in an increasingly competitive market to attract boaters and their tourist dollars.&#8221; Is the marina and boating market much different today as compared to when the paper first came out? If &#8220;there are over 1,000 berths (wet and dry) available at the top six marinas in the country&#8221; will &#8220;South East Asia’s biggest marina with up to 1,000 berths (at Melaka Gateway)&#8221; create a demand-supply imbalance? On the other hand, if KAJ can plan and execute a good quality destination marina along the Straits of Malacca which can out do the competition it can potentially be a game changer. Coupled with Phuket&#8217;s unfavorable regulations for foreign flagged boats staying long term we may have something going here. &#160; What&#8217;s the strategy for Royal Caribbean to invest in the cruise terminal? We previously noted Sanya&#8217;s announcement to be Asia&#8217;s largest cruise port and Jeju island&#8217;s plan to be a leading Asian cruise port. Now we have similar intentions by Melaka Gateway but with a slight difference. We are very far from experts about the cruise industry but it&#8217;s still interesting to note when one of the world&#8217;s largest cruise company takes a stake in developing a cruise port in Asia. What does it mean? Will we see more examples of this happening in future? Can someone with cruise industry experience help answer this question. &#160; Sources Malaysia Chronicle The Sun Daily TTG Asia The Edge &#160; Image: TTG Asia / Melaka Gateway / Cruise Industry News You just finished reading Malaysia: KAJ develops Melaka Gateway ! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17055">Malaysia: KAJ develops Melaka Gateway </a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/malaysia-kaj-melaka-gateway/feed/22.1802065 102.2495728http://thedevelopmentadvisor.com/malaysia-kaj-melaka-gateway/Do you have a Question on Asia coastal resort and destination development?http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/OQRTEGTnyEM/GeneralAsia CoastalWed, 12 Feb 2014 17:35:46 PSThttp://thedevelopmentadvisor.com/?p=17120Do you have a question on coastal resort and destination development?

Do you have the knowledge to help answer reader’s questions?

From time to time we receive questions from readers beyond our capacity and knowledge to answer.

This is similar to Yahoo! Answers or Quora but specific to resort and coastal destination development in Asia.

Hopefully, this also starts a two-way conversation between readers.

To ask a question you need to enter an email address. Its understandable some prefer asking questions anonymously but unfortunately the software requires an email address verification. However, anyone can reply and answer anonymously.

To start off I’ve posted a question by one of our readers regarding resort development in Myanmar’s Mergui Archipelago.

]]>Do you have a question on coastal resort and destination development? Do you have the knowledge to help answer reader&#8217;s questions? From time to time we receive questions from readers beyond our capacity and knowledge to answer. Rather than leave these questions unanswered we&#8217;ve come up with a solution &#8211; a Question &#38; Answer page. This is similar to Yahoo! Answers or Quora but specific to resort and coastal destination development in Asia. Hopefully, this also starts a two-way conversation between readers. To ask a question you need to enter an email address. Its understandable some prefer asking questions anonymously but unfortunately the software requires an email address verification. However, anyone can reply and answer anonymously. To start off I&#8217;ve posted a question by one of our readers regarding resort development in Myanmar&#8217;s Mergui Archipelago. You can view the Question &#38; Answer section here. You just finished reading Do you have a Question on Asia coastal resort and destination development?! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17120">Do you have a Question on Asia coastal resort and destination development?</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/asia-coastal-resort-destination-development-question/feed/0http://thedevelopmentadvisor.com/asia-coastal-resort-destination-development-question/Vietnam: Understanding the Vung Ro Bay Development Projecthttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/5srHTRInudk/Land DevelopmentFeaturedAsia CoastalTue, 11 Feb 2014 01:19:00 PSThttp://thedevelopmentadvisor.com/?p=17057This post is contributed by Mark Gwyther of MGT Management Consulting.

Introduction

We pride ourselves in our accurate forecasts and predictions in The Vietnam Resort Report. Two years ago we began forecasting rising occupancy rates in coastal resorts beginning in 2014, the huge influx of Chinese tourists, and warning of titanium mines polluting the Binh Thuan coastline. Our ten-year forecast of incoming visitors to Vietnam – also made two years ago – is still tracking very closely to actuals. So when we miss a prediction badly, we want to understand why. Especially if it is big news in not only Vietnam, but throughout the region. Vung Ro Petroleum announcing a $2.5 billion in financing deal for their Vung Ro Development was big news.

In the August 2013 issue we commented on the Vung Ro Bay master plan (seen here[1]) from Atkins.

“This is a perfect example of the problem with investing in Vietnam for investors unfamiliar with the country: A beautifully produced video of a master plan designed by a world-famous design firm for a project that has no chance of being constructed and if it were constructed within the next 10 years, it would be a complete disaster.”

Eight months later the owners, Vung Ro Petroleum, found their financing when Rose Rock Group (affiliated with the famous Rockefeller family) pledged $2.5 billion USD to the project. Marketwired.com reported it with the following:

“ Vung Ro Petroleum, an independent petroleum company based in Vietnam, and Rose Rock Group, boutique alternatives investment management and real estate development firm founded by members of the Rockefeller family, have entered into an agreement to cooperate on the development of a resort community in Vung Ro Bay, on the south central coast of Vietnam.”[2]

The local news agencies followed a similar thread. Vietnam News wrote the headline “US Firm to Help Build Vung Ro Resort”[3] (evidently ignoring the fact Rose Rock Group is a Hong Kong company).

This announcement was surprising to us. As far as very large investments into tourism projects, we could name five off the top of our head that would make a lot more sense for an investor. Large projects in Phu Quoc, Ninh Thuan, Danang, and Cam Ranh are all looking for capital. All have better access and are established as tourist locations. Assuming the people at Rose Rock Group are smart (which we do), then what did we miss?

Background

To really understand our skepticism of the project, you must see the video. Produced by Atkins Design Team, it describes a “world-class, whole life destination”, and “a new global destination”. Marinas, world-class dining, resorts, hotels, luxury condominiums, a new lakeside village with high-end retail, spas, and 3,000 apartments, and a “lively resort” that “will be a key draw for tourists”. Guests “can arrive either by helicopter or the beautiful coastal road”. This all sounds wonderful without an understanding of the location.

The Location

Phu Yen Province is located just north of Khanh Hoa (Nha Trang). It has many beautiful beaches and is the easternmost Vietnamese Province. One of those beautiful spots on the coast is Vung Ro Bay.

It is about a five hour (deadly) drive from the Cam Ranh International Airport and nearly an hour drive south of the Tuy Hoa Airport. The Tuy Hoa Airport receives two domestic flights per day and does not have any facilities for international arrivals. Tuy Hoa does have a train station which is a nine hour journey from Saigon.

The limited access and long travel times have stunted the area’s tourism development. It receives about 500,000 tourists a year, nearly all who are Vietnamese.

The Phu Yen Provincial Government seems to understand that the area has significant competitive disadvantages attracting tourists, so instead they have focused on industries where they have an advantage. One of those advantages is Vung Ro Bay’s eastern location and natural deep water harbor.

In 2004, Vung Ro port started operations with a very limited number of cargo ships accessing it. However, in the last ten years the port has grown along with Vietnam’s exports and the last three years it has been at maximum capacity. The type 2 port is a gateway to Vietnam’s central region and the wide variety of agricultural exports including coffee. Expansion plans are in place to increase capacity to 1 million tons annually.[4]

More significantly, the province and Vietnam’s central government approved plans and issued an investment certificate in 2007 for an oil refinery with capacity of 4 million tons.[i] The refinery was initially allocated 185 hectares of land and a port. The provincial government is counting on the refinery attracting many other companies to the Hoa Tam Industrial Zone, particularly those related to the petro-chemical and oil refinery support industries.[5]

The Refinery

First approved in 2007, construction of the refinery has not been started yet. In fact, the province has just recently(?) finished compensation and is in the process of handing over the land to Vung Ro Petroleum.[6] However, on July 1st of 2013, the Chairman of Phu Yen Province agreed to issue a new investment certificate allowing the company to double capacity to 8 million tons and increase investment from$1.7 billion to $3.18 billion. By doing so, the province increased the land allocated from 185 hectares to 538 hectares. Not being oil refinery experts, it is unclear to us why doubling capacity requires nearly three times the area, but most likely it has to do with the province giving the Vung Ro peninsula to the company for the building of a “resort community”.

The Vung Ro Bay Master Plan

Looking closer at the master plan from Atkins and it becomes obvious; the project has very little to do with tourism and almost everything to do with developing a small city for the refinery and construction workers.

Tuy Hoa and the surrounding area has one hotel (The CenDuluxe Hotel) designed with foreign guests in mind. When the Dung Quat Refinery was constructed in Vung Tau, between 14,000 and 15,000 workers from 30 countries were involved. Twenty five percent (about 3,500) came from outside Vietnam[7] and they worked several years in Vung Tau. After the refinery is in operations, it is likely that between 3,000 and 6,000 people will be working at the refinery. Add families, supporting industries, and supporting retail and services and it becomes obvious the master plan was designed as a city for industrial workers and not some type of eco-friendly resort community. The Atkins’ master plan accounts for these workers; over 5,000 apartments and villas are planned compared to 769 hotel rooms.[8]

Conclusion

Rose Rock Group did not invest in a “resort destination” or “tourism development” as reported in many media outlets; this is a corporate housing project. Rose Rock Group invested in an oil project and a community that will support a huge refinery and the businesses which grow around it. Vung Ro Petroleum got a very large area of land cleared of local residents by the government in exchange for investing in Vietnam’s oil and gas industry. But without even beginning construction Vung Ro Petroleum converted the land acquisition into $2.5 billion of financing[ii].

Phu Yen’s provincial government made a decision that the province will forego tourism for industry. The 8 million ton processing refinery, a 1 million ton cargo port, and all the associated satellite businesses surrounding the plant are simply not compatible with a high-end tourism destination. This is an understandable decision. The province and neighboring Quy Nhon Province have issued several investment licenses for high-end resort projects with famous brands attached, that have not found investors and thus never started[9]. Movenpick[10], Outrigger[11], Ritz Carlton, and JW Marriott[12] were just some of the management companies reported to be opening a hotel along the 150km coast from Tuy Hoa to Quy Nhon. All of those projects have been cancelled or delayed indefinitely. The reason is pretty clear- despite being beautiful – there just isn’t any easy access to this coastline yet. That is too much of a competitive disadvantage when so many other locations in Vietnam – which are just as beautiful but also near an international airport or large city – are still not fully developed. Instead of waiting ten years for tourism projects to start, Phu Yen has decided to pursue oil and logistics investments.

MGT Management and its employees have no affiliation with Rose Rock Group, Vung Ro Petroleum, or any other company involved in the project described in this paper. Additionally MGT Management has not received any inside information nor talked with anyone involved. All opinions are ours.

This publication is general in nature and should not be construed as providing advice. No responsibility is taken for any party acting on the contents of this document.

[ii] Imagine if you were a poor fisherman living near Vung Ro. Suddenly your land would be worth a lot of money due to a sudden increase in demand. However, the government moves you off your land first-presumably well below the new market price- effectively transferring all the increased value to a company that will already be receiving many government incentives for the oil refinery. Welcome to Vietnam.

]]>This post is contributed by Mark Gwyther of MGT Management Consulting. &#160; Introduction We pride ourselves in our accurate forecasts and predictions in The Vietnam Resort Report. Two years ago we began forecasting rising occupancy rates in coastal resorts beginning in 2014, the huge influx of Chinese tourists, and warning of titanium mines polluting the Binh Thuan coastline. Our ten-year forecast of incoming visitors to Vietnam – also made two years ago &#8211; is still tracking very closely to actuals. So when we miss a prediction badly, we want to understand why. Especially if it is big news in not only Vietnam, but throughout the region. Vung Ro Petroleum announcing a $2.5 billion in financing deal for their Vung Ro Development was big news. In the August 2013 issue we commented on the Vung Ro Bay master plan (seen here[1]) from Atkins. “This is a perfect example of the problem with investing in Vietnam for investors unfamiliar with the country: A beautifully produced video of a master plan designed by a world-famous design firm for a project that has no chance of being constructed and if it were constructed within the next 10 years, it would be a complete disaster.” Eight months later the owners, Vung Ro Petroleum, found their financing when Rose Rock Group (affiliated with the famous Rockefeller family) pledged $2.5 billion USD to the project. Marketwired.com reported it with the following: “ Vung Ro Petroleum, an independent petroleum company based in Vietnam, and Rose Rock Group, boutique alternatives investment management and real estate development firm founded by members of the Rockefeller family, have entered into an agreement to cooperate on the development of a resort community in Vung Ro Bay, on the south central coast of Vietnam.”[2] The local news agencies followed a similar thread. Vietnam News wrote the headline “US Firm to Help Build Vung Ro Resort”[3] (evidently ignoring the fact Rose Rock Group is a Hong Kong company). This announcement was surprising to us. As far as very large investments into tourism projects, we could name five off the top of our head that would make a lot more sense for an investor. Large projects in Phu Quoc, Ninh Thuan, Danang, and Cam Ranh are all looking for capital. All have better access and are established as tourist locations. Assuming the people at Rose Rock Group are smart (which we do), then what did we miss? &#160; Background To really understand our skepticism of the project, you must see the video. Produced by Atkins Design Team, it describes a “world-class, whole life destination”, and “a new global destination”. Marinas, world-class dining, resorts, hotels, luxury condominiums, a new lakeside village with high-end retail, spas, and 3,000 apartments, and a “lively resort” that “will be a key draw for tourists”. Guests “can arrive either by helicopter or the beautiful coastal road”. This all sounds wonderful without an understanding of the location. &#160; The Location Phu Yen Province is located just north of Khanh Hoa (Nha Trang). It has many beautiful beaches and is the easternmost Vietnamese Province. One of those beautiful spots on the coast is Vung Ro Bay. It is about a five hour (deadly) drive from the Cam Ranh International Airport and nearly an hour drive south of the Tuy Hoa Airport. The Tuy Hoa Airport receives two domestic flights per day and does not have any facilities for international arrivals. Tuy Hoa does have a train station which is a nine hour journey from Saigon. The limited access and long travel times have stunted the area’s tourism development. It receives about 500,000 tourists a year, nearly all who are Vietnamese. The Phu Yen Provincial Government seems to understand that the area has significant competitive disadvantages attracting tourists, so instead they have focused on industries where they have an advantage. One of those advantages is Vung Ro Bay’s eastern location and natural deep water harbor. In 2004, Vung Ro port started operations with a very limited number of cargo ships accessing it. However, in the last ten years the port has grown along with Vietnam’s exports and the last three years it has been at maximum capacity. The type 2 port is a gateway to Vietnam’s central region and the wide variety of agricultural exports including coffee. Expansion plans are in place to increase capacity to 1 million tons annually.[4] More significantly, the province and Vietnam’s central government approved plans and issued an investment certificate in 2007 for an oil refinery with capacity of 4 million tons.[i] The refinery was initially allocated 185 hectares of land and a port. The provincial government is counting on the refinery attracting many other companies to the Hoa Tam Industrial Zone, particularly those related to the petro-chemical and oil refinery support industries.[5] &#160; The Refinery First approved in 2007, construction of the refinery has not been started yet. In fact, the province has just recently(?) finished compensation and is in the process of handing over the land to Vung Ro Petroleum.[6] However, on July 1st of 2013, the Chairman of Phu Yen Province agreed to issue a new investment certificate allowing the company to double capacity to 8 million tons and increase investment from$1.7 billion to $3.18 billion. By doing so, the province increased the land allocated from 185 hectares to 538 hectares. Not being oil refinery experts, it is unclear to us why doubling capacity requires nearly three times the area, but most likely it has to do with the province giving the Vung Ro peninsula to the company for the building of a “resort community”. &#160; The Vung Ro Bay Master Plan Looking closer at the master plan from Atkins and it becomes obvious; the project has very little to do with tourism and almost everything to do with developing a small city for the refinery and construction workers. &#160; Tuy Hoa and the surrounding area has one hotel (The CenDuluxe Hotel) designed with foreign guests in mind. When the Dung Quat Refinery was constructed in Vung Tau, between 14,000 and 15,000 workers from 30 countries were involved. Twenty five percent (about 3,500) came from outside Vietnam[7] and they worked several years in Vung Tau. After the refinery is in operations, it is likely that between 3,000 and 6,000 people will be working at the refinery. Add families, supporting industries, and supporting retail and services and it becomes obvious the master plan was designed as a city for industrial workers and not some type of eco-friendly resort community. The Atkins’ master plan accounts for these workers; over 5,000 apartments and villas are planned compared to 769 hotel rooms.[8] &#160; Conclusion Rose Rock Group did not invest in a “resort destination” or “tourism development” as reported in many media outlets; this is a corporate housing project. Rose Rock Group invested in an oil project and a community that will support a huge refinery and the businesses which grow around it. Vung Ro Petroleum got a very large area of land cleared of local residents by the government in exchange for investing in Vietnam’s oil and gas industry. But without even beginning construction Vung Ro Petroleum converted the land acquisition into $2.5 billion of financing[ii]. Phu Yen’s provincial government made a decision that the province will forego tourism for industry. The 8 million ton processing refinery, a 1 million ton cargo port, and all the associated satellite businesses surrounding the plant are simply not compatible with a high-end tourism destination. This is an understandable decision. The province and neighboring Quy Nhon Province have issued several investment licenses for high-end resort projects with famous brands attached, that have not found investors and thus never started[9]. Movenpick[10], Outrigger[11], Ritz Carlton, and JW Marriott[12] were just some of the management companies reported to be opening a hotel along the 150km coast from Tuy Hoa to Quy Nhon. All of those projects have been cancelled or delayed indefinitely. The reason is pretty clear- despite being beautiful &#8211; there just isn’t any easy access to this coastline yet. That is too much of a competitive disadvantage when so many other locations in Vietnam – which are just as beautiful but also near an international airport or large city – are still not fully developed. Instead of waiting ten years for tourism projects to start, Phu Yen has decided to pursue oil and logistics investments. &#160; &#160; Visit us on the web at: www.mgtmanagement.com To subscribe to the Vietnam Resort Report, send an email to info@mgtmanagement.com. &#160; MGT Management and its employees have no affiliation with Rose Rock Group, Vung Ro Petroleum, or any other company involved in the project described in this paper. Additionally MGT Management has not received any inside information nor talked with anyone involved. All opinions are ours. This publication is general in nature and should not be construed as providing advice. No responsibility is taken for any party acting on the contents of this document. &#160; [1] https://www.youtube.com/watch?v=XY9xtFymAeo [2] http://www.marketwired.com/press-release/vung-ro-petroleum-rose-rock-group-sign-cooperation-agreement-on-us-25-billion-development-1868617.htm (emphasis is ours) [3] http://vietnamnews.vn/economy/250187/us-firm-to-help-build-vung-ro-resort.html [4] http://phuyennews.vn/economy-investment/9905805706006306064 [5] http://vietnamnews.vn/economy/244653/phu-yen-province-vows-space-for-new-refinery.html [6] Ibid [7] http://english.pvn.vn/?portal=news&#38;page=detail&#38;category_id=95&#38;id=3294 [8] http://www.vungrobay.com/wp-content/uploads/2013/12/Vung-Ro-Bay-MP-Brochure2.pdf [9] http://yourviet.blogspot.com/2012/10/vietnam-43bn-new-city-to-dig-itself-out.html [10] http://www.vir.com.vn/news/en/investing/m%C3%B6venpick-resort-_-spa-quy-nhon-deal-inked.html [11] https://www.outrigger.com/hotels-resorts/vietnam/south-central-coast/outrigger-vinh-hoi-resort-and-spa [12] http://news.marriott.com/2010/08/marriott-international-plans-two-luxury-hotel-brands-in-quy-nhon-area-binh-dinh-province-vietnam-in-.html &#160; [i][i] For comparison purposes, Dung Quat Refinery in Vung Tau can process 6.5 million tons. [ii] Imagine if you were a poor fisherman living near Vung Ro. Suddenly your land would be worth a lot of money due to a sudden increase in demand. However, the government moves you off your land first-presumably well below the new market price- effectively transferring all the increased value to a company that will already be receiving many government incentives for the oil refinery. Welcome to Vietnam. You just finished reading Vietnam: Understanding the Vung Ro Bay Development Project! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17057">Vietnam: Understanding the Vung Ro Bay Development Project</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/vietnam-understanding-vung-ro-bay-development-project/feed/012.8676500 109.4229355http://thedevelopmentadvisor.com/vietnam-understanding-vung-ro-bay-development-project/Mandy Barker Photography: Oceanic Debrishttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/S-Qdlt0hfQ0/Energy & EnvironmentAsia CoastalFri, 07 Feb 2014 17:00:59 PSThttp://thedevelopmentadvisor.com/?p=17018My SlideDeck [see the SlideDeck]

Mandy Barker is a contemporary photographer whose work has been exhibited worldwide.

The images above are of oceanic debris recovered from the tsunami debris field of the North Pacific Ocean.

Mandy sent me an email requesting help in sourcing material for her new project. I thought that spreading the word here might help get a better response.

Calling All Soccer Balls!

I am the photographer, Mandy Barker, internationally renowned for the project, SOUP, and am now collecting marine debris Footballs (round soccer balls) that have been found on beaches/washed up, for my next project.

I am hoping to get footballs (even parts of will do) from as many different countries/beaches from around the world as possible.

If you saw a football washed up and would be willing to post it on to me in the UK, telling me where you found it (and could add an emailed pic of where you found it & date) I would be extremely grateful. I will of course pay all postage costs and in return send you a postcard of the final image which will include your ball!

If you can help or know someone who could, please email me: info@mandy-barker.com for my postal address.

Deadline for balls collected is end of March 2014.

My work aims to engage the public by combining the contradiction between initial aesthetic attraction with the message of awareness about plastic marine pollution. To view my previous images please visit http://mandy-barker.com

All footballs will be greatly received & thank you for helping me to increase awareness of issue of marine pollution.

]]>&#160; Mandy Barker is a contemporary photographer whose work has been exhibited worldwide. The images above are of oceanic debris recovered from the tsunami debris field of the North Pacific Ocean. Mandy sent me an email requesting help in sourcing material for her new project. I thought that spreading the word here might help get a better response. &#160; Calling All Soccer Balls! I am the photographer, Mandy Barker, internationally renowned for the project, SOUP, and am now collecting marine debris Footballs (round soccer balls) that have been found on beaches/washed up, for my next project. I am hoping to get footballs (even parts of will do) from as many different countries/beaches from around the world as possible. If you saw a football washed up and would be willing to post it on to me in the UK, telling me where you found it (and could add an emailed pic of where you found it &#38; date) I would be extremely grateful. I will of course pay all postage costs and in return send you a postcard of the final image which will include your ball! If you can help or know someone who could, please email me: info@mandy-barker.com for my postal address. Deadline for balls collected is end of March 2014. My work aims to engage the public by combining the contradiction between initial aesthetic attraction with the message of awareness about plastic marine pollution. To view my previous images please visit http://mandy-barker.com All footballs will be greatly received &#38; thank you for helping me to increase awareness of issue of marine pollution. Images: Mandy Barker Photography You just finished reading Mandy Barker Photography: Oceanic Debris! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=17018">Mandy Barker Photography: Oceanic Debris</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/mandy-barker-photography-oceanic-debris/feed/0http://thedevelopmentadvisor.com/mandy-barker-photography-oceanic-debris/Are lawyers killing real estate deals?http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/h9oEPiSDp8Q/GeneralAsia CoastalThu, 06 Feb 2014 17:00:30 PSThttp://thedevelopmentadvisor.com/?p=16992Had to smile when reading this.

The level of foreign direct investment into property can be affected by real estate lawyers with attitudes that kill deals. Sellers lose on income, buyers lose on investment targets, and monies are not exchanged, thereby slowing the economic cycle in the real estate segment.

Just who do lawyers think they are, interfering in deals? How can cautious, balanced, educated legal advice be tempered with the willingness to enter into a transaction? The line between deal killer lawyers and deal maker lawyers can be a blurry one, but in this article, I offer my opinions based on experiences with lawyers from different countries and backgrounds, and from having recruited and trained lawyers in Asia for 10 years.

All lawyers like to think of themselves as good at what they do—after all they have legal training and a license—but what actually makes a lawyer passionate about real estate? When I recruit lawyers or deal with them on the ‘other side of a table’, I try to remain open- minded, bearing in mind the best interests of my client regardless of the personality of other lawyers. A deal is made enjoyable when a courteous and polite lawyer, simply doing their best for their client, is involved in a transaction. An understanding of each party’s background and expertise, and appreciation of opinion whether aligned or differing, is conducive to a smooth transaction.

There are many different ‘types’ of lawyers, but it is possible to loosely divide certain traits of real estate lawyers into sweepingly general categories:

Academic lawyers

Generally, such lawyers are well- educated; have obtained a Masters of Law, perhaps internationally; and have often thought about becoming a judge. Oftentimes, the passion for in-depth reading of obscure materials can lead to a disconnect between these lawyers and the business world they’re operating in. Of course, many academic lawyers buck this trend and sharpen their edge by forging relations with business people and immersing themselves in business as well as law.

Commercially minded lawyers

In almost every brochure for top- and mid-tier law firms in the UK in the 90s, I saw phrases such as ‘our lawyers are truly commercially minded’ that were clearly intended to attract clients. However, you can often find that an expression of commercialism is removed from practicing commercial attitudes and beliefs. Commercially minded lawyers are able to accept that, notwithstanding their advice, caution, or the spelling out of risks to their clients, their clients can override advice in an attempt to achieve a commercial goal. In order to be able to operate in the midst of clients who are successful in their own right, lawyers have to understand that they are not the owners or providers within their client’s industry. Therefore, there are boundaries whereby commercial beliefs can override legal recommendations.

Such lawyers have immense value when the chips are down and clients have nowhere to turn except the courts to resolve a dispute. However, sometimes the worst thing to happen to a commercial real estate deal is a lawyer who is generally involved in litigation, dips into the commercial world, and approaches an amicable transaction as if it may transpose into war at any moment. This type of lawyer is generally a real estate agent’s worst.

Meandering, indecisive over- cautious lawyers

This type of lawyer rests on the fact that clients make the final decision, but to an extreme. Where clients are actually seeking guidance and direction, such lawyers simply bounce back questions to clients, fudge the purpose of the original questions, or ask their clients to choose, deeming every question a ‘commercial’ issue and not a legal one, and it therefore cannot be commented upon by the lawyer. This can create a glaring gap in the relationship between a client and a lawyer, and be the source of much frustration for clients who feel that they should not receive mostly questions or obfuscation in return for paying legal fees.

Aside from these ‘categories’ of lawyers, there are many instances of behaviours that damage real estate markets. I’ll describe lawyer’s deal- killing behaviours in Part two of this series.

About the Author:

Hughes Krupica is an international legal services firm, specialising in Real Estate; Hospitality; Leisure and Dispute Resolution legal services, with its head office in Thailand, and working in consultancies, across Asia. hugheskrupica.com

]]>Had to smile when reading this. Via Property Report The level of foreign direct investment into property can be affected by real estate lawyers with attitudes that kill deals. Sellers lose on income, buyers lose on investment targets, and monies are not exchanged, thereby slowing the economic cycle in the real estate segment. Just who do lawyers think they are, interfering in deals? How can cautious, balanced, educated legal advice be tempered with the willingness to enter into a transaction? The line between deal killer lawyers and deal maker lawyers can be a blurry one, but in this article, I offer my opinions based on experiences with lawyers from different countries and backgrounds, and from having recruited and trained lawyers in Asia for 10 years. All lawyers like to think of themselves as good at what they do—after all they have legal training and a license—but what actually makes a lawyer passionate about real estate? When I recruit lawyers or deal with them on the ‘other side of a table’, I try to remain open- minded, bearing in mind the best interests of my client regardless of the personality of other lawyers. A deal is made enjoyable when a courteous and polite lawyer, simply doing their best for their client, is involved in a transaction. An understanding of each party’s background and expertise, and appreciation of opinion whether aligned or differing, is conducive to a smooth transaction. There are many different ‘types’ of lawyers, but it is possible to loosely divide certain traits of real estate lawyers into sweepingly general categories: Academic lawyers Generally, such lawyers are well- educated; have obtained a Masters of Law, perhaps internationally; and have often thought about becoming a judge. Oftentimes, the passion for in-depth reading of obscure materials can lead to a disconnect between these lawyers and the business world they’re operating in. Of course, many academic lawyers buck this trend and sharpen their edge by forging relations with business people and immersing themselves in business as well as law. Commercially minded lawyers In almost every brochure for top- and mid-tier law firms in the UK in the 90s, I saw phrases such as ‘our lawyers are truly commercially minded’ that were clearly intended to attract clients. However, you can often find that an expression of commercialism is removed from practicing commercial attitudes and beliefs. Commercially minded lawyers are able to accept that, notwithstanding their advice, caution, or the spelling out of risks to their clients, their clients can override advice in an attempt to achieve a commercial goal. In order to be able to operate in the midst of clients who are successful in their own right, lawyers have to understand that they are not the owners or providers within their client’s industry. Therefore, there are boundaries whereby commercial beliefs can override legal recommendations. Such lawyers have immense value when the chips are down and clients have nowhere to turn except the courts to resolve a dispute. However, sometimes the worst thing to happen to a commercial real estate deal is a lawyer who is generally involved in litigation, dips into the commercial world, and approaches an amicable transaction as if it may transpose into war at any moment. This type of lawyer is generally a real estate agent’s worst. Meandering, indecisive over- cautious lawyers This type of lawyer rests on the fact that clients make the final decision, but to an extreme. Where clients are actually seeking guidance and direction, such lawyers simply bounce back questions to clients, fudge the purpose of the original questions, or ask their clients to choose, deeming every question a ‘commercial’ issue and not a legal one, and it therefore cannot be commented upon by the lawyer. This can create a glaring gap in the relationship between a client and a lawyer, and be the source of much frustration for clients who feel that they should not receive mostly questions or obfuscation in return for paying legal fees. Aside from these ‘categories’ of lawyers, there are many instances of behaviours that damage real estate markets. I’ll describe lawyer’s deal- killing behaviours in Part two of this series. About the Author: Hughes Krupica is an international legal services firm, specialising in Real Estate; Hospitality; Leisure and Dispute Resolution legal services, with its head office in Thailand, and working in consultancies, across Asia. hugheskrupica.com You just finished reading Are lawyers killing real estate deals?! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16992">Are lawyers killing real estate deals?</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/lawyers-killing-real-estate-deals/feed/0http://thedevelopmentadvisor.com/lawyers-killing-real-estate-deals/Solving the resort destination development chicken-or-egg dilemmahttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/uMghB6cnRPk/Development ManagementAsia CoastalSat, 01 Feb 2014 20:29:29 PSThttp://thedevelopmentadvisor.com/?p=16959

Until there are passenger volumes airlines are not interested. Until airlines start servicing a destination hotel developers are not interested.

As counter-intuitive as it sounds, investment in supporting infrastructure does not guarantee an emerging resort destination’s immediate success. This applies to any country, large hotel developers will not come just because you’ve got state-of-the-art airport, power supply, roads or sewage treatment plant. Why? Because infrastructure alone does not reduce tourism market risk at the beginning of the development cycle.

The success of an emerging resort destination really depends more on the success of the emerging resorts (and an appropriate level of supporting infrastructure)

How to resolve chicken-or-egg dilemma?

Two ways to solve the dilemma:

1. Simultaneous large-scale development, led by government or large business group, with immediate build up into both hotel room capacity and co-opting air access infrastructure.

2. Gradual organic development. Small investments in hotels matched with small investments in access infrastructure. When the destination grows in scale match with large-scale air access and similarly large-scale investment into higher end hotel properties. This has been the conventional approach in most of Southeast Asia’s coastal resort destinations.

A water analogy

Think of it this way.

A large water pipe carrying a lot of water (air lift capacity) requires a large holding water tank (hotel room capacity). If there’s no holding tank capacity then why run a large water pipe?

So, you can either (1) build both the large pipe and large water tank at the same time or (2) gradually increase pipe capacity as tank capacity increases.

In the current situation where infrastructure has been built up to future capacity it essentially becomes a waiting game between hotel developers.

Last September the Civil Aviation Authority of Vietnam announced a halving of landing fees and ground handling costs at five airports to attract international carriers.

But Phu Bai near Hue, Lien Khuong near Da Lat, and Can Tho and Phu Quoc in the Mekong Delta have difficulty even in attracting domestic airlines.

Only Cam Ranh near Nha Trang has had any success. (our comments: And that’s because of the presence of Nha Trang)

Phu Quoc, for instance, opened in 2012 with a capacity to handle more than three million passengers a year and plans to attract flights from Singapore, Hong Kong, Thailand, and Malaysia.

But there are no international flights yet and passenger numbers are only a fourth of the capacity, CAAV chief Lai Xuan Thanh told Thanh Nien.

Foreign airlines, despite being interested in starting flights to Phu Quoc, remain concerned about the quality of the island’s tourism infrastructure, he said.

Since it opened its international terminal in 2011, Can Tho airport has received flights from Taiwan only before and after Tet (the Lunar New Year).

The airport, with a capacity of three-five million passengers a year, sees three round flights from Hanoi and Phu Quoc every day.

Flights from Ho Chi Minh City have been canceled due to lack of demand.

Lien Khuong Airport was also upgraded in 2009 to serve 1.5-two million passengers annually. But it now receives flights from HCMC, the central city of Da Nang, and Hanoi.

Though the Ministry of Transport has approved a proposal by Lam Dong Province, where the airport is located, to begin flights to Singapore, it is not known when that will happen.

Phu Bai only received flights from HCMC and Hanoi.

Thanh said the start of international flights to these airports depends on the market and carriers.

There is large demand for international flights to Cam Ranh, but very low elsewhere, he said.

Asked if it was wasteful to invest in international terminals that remain unused, he said since the standards for domestic and international terminals are almost the same, there would be no waste, implying they could be used for local flights.

Meanwhile, more domestic airports are planning to add international terminals — like Vinh in the north-central province of Nghe An and Cat Bi in the northern port city of Hai Phong.

Official figures show that 21 airports in Vietnam served nearly 45 million passengers last year, with Tan Son Nhat in HCMC accounting for 20 million and Noi Bai in Hanoi for more than 12 million.

]]>&#160; Vietnam&#8217;s emerging resort destination airports face a classic chicken-or-egg dilemma. Do resort hotels come first or does air lift capacity come first? Until there are passenger volumes airlines are not interested. Until airlines start servicing a destination hotel developers are not interested. As counter-intuitive as it sounds, investment in supporting infrastructure does not guarantee an emerging resort destination&#8217;s immediate success. This applies to any country, large hotel developers will not come just because you&#8217;ve got state-of-the-art airport, power supply, roads or sewage treatment plant. Why? Because infrastructure alone does not reduce tourism market risk at the beginning of the development cycle. The success of an emerging resort destination really depends more on the success of the emerging resorts (and an appropriate level of supporting infrastructure) How to resolve chicken-or-egg dilemma? Two ways to solve the dilemma: 1. Simultaneous large-scale development, led by government or large business group, with immediate build up into both hotel room capacity and co-opting air access infrastructure. 2. Gradual organic development. Small investments in hotels matched with small investments in access infrastructure. When the destination grows in scale match with large-scale air access and similarly large-scale investment into higher end hotel properties. This has been the conventional approach in most of Southeast Asia&#8217;s coastal resort destinations. A water analogy Think of it this way. A large water pipe carrying a lot of water (air lift capacity) requires a large holding water tank (hotel room capacity). If there&#8217;s no holding tank capacity then why run a large water pipe? So, you can either (1) build both the large pipe and large water tank at the same time or (2) gradually increase pipe capacity as tank capacity increases. In the current situation where infrastructure has been built up to future capacity it essentially becomes a waiting game between hotel developers. &#160; &#160; Via Thanh Nien News: Half of Vietnam&#8217;s eight international airports mainly serve domestic flights despite aviation authorities’ initiatives to attract foreign airlines. Last September the Civil Aviation Authority of Vietnam announced a halving of landing fees and ground handling costs at five airports to attract international carriers. But Phu Bai near Hue, Lien Khuong near Da Lat, and Can Tho and Phu Quoc in the Mekong Delta have difficulty even in attracting domestic airlines. Only Cam Ranh near Nha Trang has had any success. (our comments: And that&#8217;s because of the presence of Nha Trang) Phu Quoc, for instance, opened in 2012 with a capacity to handle more than three million passengers a year and plans to attract flights from Singapore, Hong Kong, Thailand, and Malaysia. But there are no international flights yet and passenger numbers are only a fourth of the capacity, CAAV chief Lai Xuan Thanh told Thanh Nien. Foreign airlines, despite being interested in starting flights to Phu Quoc, remain concerned about the quality of the island’s tourism infrastructure, he said. Since it opened its international terminal in 2011, Can Tho airport has received flights from Taiwan only before and after Tet (the Lunar New Year). The airport, with a capacity of three-five million passengers a year, sees three round flights from Hanoi and Phu Quoc every day. Flights from Ho Chi Minh City have been canceled due to lack of demand. Lien Khuong Airport was also upgraded in 2009 to serve 1.5-two million passengers annually. But it now receives flights from HCMC, the central city of Da Nang, and Hanoi. Though the Ministry of Transport has approved a proposal by Lam Dong Province, where the airport is located, to begin flights to Singapore, it is not known when that will happen. Phu Bai only received flights from HCMC and Hanoi. Thanh said the start of international flights to these airports depends on the market and carriers. There is large demand for international flights to Cam Ranh, but very low elsewhere, he said. Asked if it was wasteful to invest in international terminals that remain unused, he said since the standards for domestic and international terminals are almost the same, there would be no waste, implying they could be used for local flights. Meanwhile, more domestic airports are planning to add international terminals &#8212; like Vinh in the north-central province of Nghe An and Cat Bi in the northern port city of Hai Phong. Official figures show that 21 airports in Vietnam served nearly 45 million passengers last year, with Tan Son Nhat in HCMC accounting for 20 million and Noi Bai in Hanoi for more than 12 million. Image: Todd Levy You just finished reading Solving the resort destination development chicken-or-egg dilemma! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16959">Solving the resort destination development chicken-or-egg dilemma</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/solving-resort-destination-development-chicken-egg-dilemma/feed/0http://thedevelopmentadvisor.com/solving-resort-destination-development-chicken-egg-dilemma/Marc Faber: “I like Vietnam” and Da Nanghttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/k8rkAtYc5Co/GeneralAsia CoastalThu, 30 Jan 2014 19:00:46 PSThttp://thedevelopmentadvisor.com/?p=16924For readers with an interest in Vietnam.

“I like Vietnam. The economy has had its troubles, and the market has seen a big decline. I want you to visualize Vietnam. [Stands up, walks to a nearby wall, and begins to draw a map of Vietnam with his hands.] Here’s Saigon, or Ho Chi Minh City, the border with China, and the Mekong River. And here in the middle, on the coast, is Da Nang.”

When a conventionally bearish investor has a bullish view it’s time to take a second look.

]]>For readers with an interest in Vietnam. Some investors are off loading. On the other hand Marc Faber, or Dr Doom of the Gloom Boom Doom report speaking at the Barron&#8217;s Roundtable, on Vietnam (and also Danang): &#8220;I like Vietnam. The economy has had its troubles, and the market has seen a big decline. I want you to visualize Vietnam. [Stands up, walks to a nearby wall, and begins to draw a map of Vietnam with his hands.] Here&#8217;s Saigon, or Ho Chi Minh City, the border with China, and the Mekong River. And here in the middle, on the coast, is Da Nang.&#8221; When a conventionally bearish investor has a bullish view it&#8217;s time to take a second look. You just finished reading Marc Faber: "I like Vietnam" and Da Nang! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16924">Marc Faber: "I like Vietnam" and Da Nang</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/marc-faber-likes-vietnam/feed/4http://thedevelopmentadvisor.com/marc-faber-likes-vietnam/Patong is Phuket’s main attraction!http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/fzrn1pDRAxg/Tourism DevelopmentAsia CoastalSun, 26 Jan 2014 04:00:36 PSThttp://thedevelopmentadvisor.com/?p=16897

We have been advocating on this site the importance a beach resort town plays in the overall attractiveness of a destination.

The poll below conducted by Phuket Gazette confirms this view. Surprisingly, not even the beaches alone comes close in terms of attractiveness. Next to Patong’s nightlife in terms of attractive is ‘Phuket’s unique mix of all the above’ – in other words Phuket’s entire tourism eco-system.

If you are responsible for tourism and destination development or are master planning one of Asia’s emerging resort locations keep this in mind. The next level of a destination’s competitive advantage will be more than beaches – it will stem from the attractiveness of the destination’s entire tourism eco-system with the core being a compelling beach resort town.

Via Phuket Gazette

Overall, 34.2% of respondents said it was “Phuket’s unique mix” of beaches; natural beauty; Patong nightlife; and value for money offered.

However, Patong nightlife topped the poll as the most popular single attraction. Leading the charge were Thais, of whom 71% voted Patong nightlife as the main reason to come to Phuket. In comparison, 26% of tourists and 16% of local foreign residents marked the party hub as their top choice.

Hardly an encouraging result for the Tourism Authority of Thailand (TAT) was that more than 20% of respondents overall said they didn’t know why anyone would come to Phuket.

They may have a point. It certainly wasn’t for “the natural beauty of Phuket and the surrounding region”, which landed just 7% of the votes, or even the oft-touted beaches of Phuket, which garnered a meager 6.4%.

What must be even more disappointing for the TAT was that 13% of the tourists visiting the island said they didn’t know why they came. Such an appraisal of Phuket’s lack of draw was supported by 29% of the local foreign residents and 16% of Thais responding to the poll.

]]>&#160; We have been advocating on this site the importance a beach resort town plays in the overall attractiveness of a destination. The poll below conducted by Phuket Gazette confirms this view. Surprisingly, not even the beaches alone comes close in terms of attractiveness. Next to Patong&#8217;s nightlife in terms of attractive is &#8216;Phuket&#8217;s unique mix of all the above&#8217; &#8211; in other words Phuket&#8217;s entire tourism eco-system. Now can you understand why Malaysians consider Langkawi &#8216;dead&#8217; while the Thais are enjoying Phuket&#8217;s nightlife? If you are responsible for tourism and destination development or are master planning one of Asia&#8217;s emerging resort locations keep this in mind. The next level of a destination&#8217;s competitive advantage will be more than beaches &#8211; it will stem from the attractiveness of the destination&#8217;s entire tourism eco-system with the core being a compelling beach resort town. &#160; Via Phuket Gazette Overall, 34.2% of respondents said it was “Phuket’s unique mix” of beaches; natural beauty; Patong nightlife; and value for money offered. However, Patong nightlife topped the poll as the most popular single attraction. Leading the charge were Thais, of whom 71% voted Patong nightlife as the main reason to come to Phuket. In comparison, 26% of tourists and 16% of local foreign residents marked the party hub as their top choice. Hardly an encouraging result for the Tourism Authority of Thailand (TAT) was that more than 20% of respondents overall said they didn’t know why anyone would come to Phuket. They may have a point. It certainly wasn’t for “the natural beauty of Phuket and the surrounding region”, which landed just 7% of the votes, or even the oft-touted beaches of Phuket, which garnered a meager 6.4%. What must be even more disappointing for the TAT was that 13% of the tourists visiting the island said they didn’t know why they came. Such an appraisal of Phuket’s lack of draw was supported by 29% of the local foreign residents and 16% of Thais responding to the poll. &#160; &#160; Image: jo.sau You just finished reading Patong is Phuket's main attraction!! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16897">Patong is Phuket's main attraction!</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/patong-phukets-main-attraction/feed/0http://thedevelopmentadvisor.com/patong-phukets-main-attraction/Asia’s ‘Golden Triangle’ for emerging resort development?http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/3mhJ3M5W0IM/Resort DevelopmentMapAsia CoastalSat, 18 Jan 2014 19:00:50 PSThttp://thedevelopmentadvisor.com/?p=16572

Emerging destinations with greatest market access

Where are emerging growth areas for resort development in view of the epic growth of the Asian middle class? The tourism industry recognizes the opportunities but let’s take it a step further and ask: Are there prime locations for emerging resort development? Rather than following the herd we attempt to point out other possible less obvious destinations by flight-time-coverage analysis.

Urban centers within 3 hour flight time

2000km radius from Phuket. Approximately 3 hours flight time.

It’s common to see destination or project marketing brochures with flight time coverage centered on the destination. For example, the image on the right shows the source markets within a 3 hours flight from Phuket.

In this post we are going to flip this around and ask: Where are the coastal destinations 3 hours flight time away from major emerging middle class Asian urban centers. This enables us to find potential emerging pockets of development that offers the most coverage from urban growth centers that are 3 hours away. The darkest shade of blue in the interactive Google Map above is where most overlap occurs in this 3 hour flight time from major urban centers.

Why 3 hours?

Most of Asian tourism travel will be intra-regional short-haul market – 4 to 5 day average length of stay as well as the short weekend getaway. 3 hours flight time is not unreasonable. If we double the flight time the longer distance covers most of our area of interest anyway and not helpful in identifying emerging pockets of opportunity.

Excludes more developed urban centers

We have excluded Japan, Korea, Hongkong, Singapore, Australia as source markets as urban centers are fairly established already. We want to look at how the impact of emerging source markets will have on new destination development.

Emerging destination & resort development ‘Golden Triangle’

Asia’s emerging coastal resort development ‘Golden Triangle’

Looking at the map at the top of this post its visually apparent there are two areas where most overlaps occurs. The South China Sea is one area and another within mainland southern China. We shall only look at the former as our focus here is on coastal Asia south of Hainan.

We have termed this area the ‘Emerging resort development Golden Triangle’. While most coastlines have access to several source markets within a 3 hour flight radius the places within and bordering this triangle have coastlines with more market access options than others.

The apex boundary of this ‘golden triangle’ is around:

Sabah-Palawan in the east

Anambas-Natuna islands in the south

Eastern Gulf of Thailand-Coastal Cambodia-South Vietnam

Most of the places within this triangle are still undeveloped or very much emergent as tourism destinations. With the right tourism development policies and focused destination development and planning can the destinations within the ‘golden triangle’ grow faster than destinations outside?

]]>&#160; Emerging destinations with greatest market access Where are emerging growth areas for resort development in view of the epic growth of the Asian middle class? The tourism industry recognizes the opportunities but let&#8217;s take it a step further and ask: Are there prime locations for emerging resort development? Rather than following the herd we attempt to point out other possible less obvious destinations by flight-time-coverage analysis. Urban centers within 3 hour flight time It&#8217;s common to see destination or project marketing brochures with flight time coverage centered on the destination. For example, the image on the right shows the source markets within a 3 hours flight from Phuket. In this post we are going to flip this around and ask: Where are the coastal destinations 3 hours flight time away from major emerging middle class Asian urban centers. This enables us to find potential emerging pockets of development that offers the most coverage from urban growth centers that are 3 hours away. The darkest shade of blue in the interactive Google Map above is where most overlap occurs in this 3 hour flight time from major urban centers. Why 3 hours? Most of Asian tourism travel will be intra-regional short-haul market &#8211; 4 to 5 day average length of stay as well as the short weekend getaway. 3 hours flight time is not unreasonable. If we double the flight time the longer distance covers most of our area of interest anyway and not helpful in identifying emerging pockets of opportunity. Emerging urban centers covered Bombay, Delhi, Bangalore, Yangon, Bangkok, Kuala Lumpur, Phnom Penh, Jakarta, Surabaya, Bandung, Ho Chi Minh City, Hanoi, Manila, Guangzhou, Shanghai, Beijing. Excludes more developed urban centers We have excluded Japan, Korea, Hongkong, Singapore, Australia as source markets as urban centers are fairly established already. We want to look at how the impact of emerging source markets will have on new destination development. &#160; Emerging destination &#38; resort development &#8216;Golden Triangle&#8217; Looking at the map at the top of this post its visually apparent there are two areas where most overlaps occurs. The South China Sea is one area and another within mainland southern China. We shall only look at the former as our focus here is on coastal Asia south of Hainan. We have termed this area the &#8216;Emerging resort development Golden Triangle&#8217;. While most coastlines have access to several source markets within a 3 hour flight radius the places within and bordering this triangle have coastlines with more market access options than others. The apex boundary of this &#8216;golden triangle&#8217; is around: Sabah-Palawan in the east Anambas-Natuna islands in the south Eastern Gulf of Thailand-Coastal Cambodia-South Vietnam Most of the places within this triangle are still undeveloped or very much emergent as tourism destinations. With the right tourism development policies and focused destination development and planning can the destinations within the &#8216;golden triangle&#8217; grow faster than destinations outside? Does the coastal tourism &#8216;golden triangle&#8217; provide more perspective on Sam Goi&#8217;s GSH acquisition of Sutera Harbour in Kota Kinabalu? or the Chinese interest in developing an integrated tourism project in Semporna-Sipadan? Cambodia&#8217;s offshore islands as well as Vietnam&#8217;s central government designated tourism development island Phu Quoc stands to benefit from being at the northern end of this triangle. A read of Mark Gwyther&#8217;s views of coastal locations in Vietnam is a must if you&#8217;re not familiar the differing aspects of Vietnam&#8217;s long coastline. Will Anambas or Natuna have a chance at being the &#8216;Maldives&#8217; of the South China Sea? &#160; Notes: Transparency of the circle varies. Larger and capital cities have a higher transparency (therefore, darker shade) compared to smaller and non-capital cities. Top three largest cities by population considered if the country is large. 3 hour flight time approximated by a 2000km radial distance. You just finished reading Asia's 'Golden Triangle' for emerging resort development?! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16572">Asia's 'Golden Triangle' for emerging resort development?</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/asia-golden-triangle-emerging-resort-development/feed/022.1545353 98.3184586http://thedevelopmentadvisor.com/asia-golden-triangle-emerging-resort-development/Phuket Boat Lagoon’s Boon Yongsakulhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/xe4GgkMQNB0/Cruise, Yacht, MarinaAsia CoastalWed, 08 Jan 2014 20:00:30 PSThttp://thedevelopmentadvisor.com/?p=16746

via Phuket Gazette

Boon Yongsakul is the Deputy Managing Director of Boat Development Company, the dynamic local entity building some of Phuket’s newest commercial projects that will help lift the island’s business infrastructure to new heights.

Boon is the latest of the Yongsakul generation to make his contribution to the changing face of the island. “My great-grandfather came to Phuket as a worker in the local tin mines. My grandfather, Kong Yongsakul, was very clever at acquiring many tracts of land in Phuket and around Southern Thailand. He was also an ‘angel’ investor helping many people start projects. My father, Kanit, built Boat Lagoon and worked for many years to get proper land titles for all our land so that we can proceed to develop,” he says.

Perhaps the most famous of the Yongsakul developments, Boat Lagoon is one of the region’s premier boating and lifestyle destinations. Opening over 20 years ago, Boat Lagoon helped create Phuket as a destination for yachts and those associated with the marine industry.“We also built the Phuket Shopping Center on Ratsada Road 30 years ago. It received national architectural awards for its creative interpretation of the island’s Sino-Portuguese heritage. Since then, we have looked for designers who create buildings and spaces that are beautiful but also highly functional.”

Boon received much of his education in New Zealand. He graduated from the University of Canterbury at Christchurch with a degree in civil engineering and then returned to Bangkok where he enrolled at the prestigious Sasin Graduate Institute of Business Administration and obtained an MBA in Finance and Marketing.“My father had developed the Boat Lagoon so after graduation, I joined the Royal Thai Navy as I wanted to learn about the marine industry. The military taught me about discipline and commitment.”

Boon plans to create many developments in Phuket. “We have an extensive land bank of which only a small percentage is being used. For example, we have a partnership with Laguna Phuket to build 2,000 homes in Cherng Thalay as Laguna Park on 400 rai of our land. This week we are proudly opening Boat Avenue Shopping Street at what was the T-junction at the turnoff to Laguna Phuket.” This valuable property sat empty and undeveloped for many years until Boon saw its potential.“The problem was the feng shui of that corner which was considered back luck. I could see if I built a road through the project to connect with the upscale Sai Taan development behind, that I could turn a T-junction into a four way stop. And with putting shrines to both Buddhist and Muslim deities around the property, I believe success is assured.”

Phuket’s second and largest Villa Market has opened in Boat Avenue so already his plans seem to be working.“When looking at a potential project, I have certain criteria it must meet. First, I need to be convinced that it can sell. Then I need to see the demand for the project and finally, I always look to the future that the land and area will appreciate in value.”

He is particularly encouraged by the growth of the overseas Chinese and Russian markets. His plans for commercial development include how to attract and sustain these two nationalities. He has invited Hong Kong Seafood restaurant to open a franchise in one of his projects and wants to make business.

]]>via Phuket Gazette Boon Yongsakul is the Deputy Managing Director of Boat Development Company, the dynamic local entity building some of Phuket’s newest commercial projects that will help lift the island’s business infrastructure to new heights. Boon is the latest of the Yongsakul generation to make his contribution to the changing face of the island. “My great-grandfather came to Phuket as a worker in the local tin mines. My grandfather, Kong Yongsakul, was very clever at acquiring many tracts of land in Phuket and around Southern Thailand. He was also an ‘angel’ investor helping many people start projects. My father, Kanit, built Boat Lagoon and worked for many years to get proper land titles for all our land so that we can proceed to develop,” he says. Perhaps the most famous of the Yongsakul developments, Boat Lagoon is one of the region’s premier boating and lifestyle destinations. Opening over 20 years ago, Boat Lagoon helped create Phuket as a destination for yachts and those associated with the marine industry.“We also built the Phuket Shopping Center on Ratsada Road 30 years ago. It received national architectural awards for its creative interpretation of the island’s Sino-Portuguese heritage. Since then, we have looked for designers who create buildings and spaces that are beautiful but also highly functional.” Boon received much of his education in New Zealand. He graduated from the University of Canterbury at Christchurch with a degree in civil engineering and then returned to Bangkok where he enrolled at the prestigious Sasin Graduate Institute of Business Administration and obtained an MBA in Finance and Marketing.“My father had developed the Boat Lagoon so after graduation, I joined the Royal Thai Navy as I wanted to learn about the marine industry. The military taught me about discipline and commitment.” Boon plans to create many developments in Phuket. “We have an extensive land bank of which only a small percentage is being used. For example, we have a partnership with Laguna Phuket to build 2,000 homes in Cherng Thalay as Laguna Park on 400 rai of our land. This week we are proudly opening Boat Avenue Shopping Street at what was the T-junction at the turnoff to Laguna Phuket.” This valuable property sat empty and undeveloped for many years until Boon saw its potential.“The problem was the feng shui of that corner which was considered back luck. I could see if I built a road through the project to connect with the upscale Sai Taan development behind, that I could turn a T-junction into a four way stop. And with putting shrines to both Buddhist and Muslim deities around the property, I believe success is assured.” Phuket’s second and largest Villa Market has opened in Boat Avenue so already his plans seem to be working.“When looking at a potential project, I have certain criteria it must meet. First, I need to be convinced that it can sell. Then I need to see the demand for the project and finally, I always look to the future that the land and area will appreciate in value.” He is particularly encouraged by the growth of the overseas Chinese and Russian markets. His plans for commercial development include how to attract and sustain these two nationalities. He has invited Hong Kong Seafood restaurant to open a franchise in one of his projects and wants to make business. Image: Zee Pack, Thailand Professionals You just finished reading Phuket Boat Lagoon's Boon Yongsakul! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16746">Phuket Boat Lagoon's Boon Yongsakul</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/phuket-boat-lagoon-boon-yongsakul/feed/0http://thedevelopmentadvisor.com/phuket-boat-lagoon-boon-yongsakul/Why did Sam Goi’s GSH Corp buy Sutera Harbour?http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/6co2JKmEPus/Resort DevelopmentAsia CoastalSun, 05 Jan 2014 20:30:28 PSThttp://thedevelopmentadvisor.com/?p=16666Sutera Harbour from the air.

The Star reports that one of Sabah’s premier resorts is changing hands after Singapore Exchange-listed GSH Corp Ltd has acquired a 77.5% stake in Sutera Harbour Group Sdn Bhd, the owner and operator of the Sutera Harbour Resort.

GSH, through two of its wholly-owned subsidiaries Ocean View Ventures Pte Ltd and Ocean View Point Pte Ltd, is also acquiring two separate land parcels totalling nearly 10ha within the 154ha Sutera Harbour property for future luxury condominium development.

GSH is a property development company with interests in China and Malaysia and is headed by Sam Goi, the executive chairman of Tee Yih Jia Group.

Tee Yih Jia is a global food and beverage group with operations in Singapore, Malaysia, the United States, Europe and China.

“Kota Kinabalu is a rising property hotspot in Malaysia and we see robust potential for prime real estate in the city, fuelled by strong tourism growth from South Korea, Japan, Hong Kong and China,” said GSH chief executive Gilbert Ee yesterday.

“The number of visitors from these countries is growing exponentially and accounts for more than half of total international arrivals to Sabah, with more than a third of them from Hong Kong and China,” he said.

“Apart from tourism, the Sabah has experienced strong gross domestic product growth in 2012, thanks to its key sectors of agriculture and oil and gas. With such strong fundamentals, we see great potential in Kota Kinabalu’s luxury hospitality sector as well as premier resort homes.” Ee added. He said Sutera Harbour and its surrounding properties were positioned to benefit from this growth.

“Its location is within 10 minutes from the city and yet provides a quiet, exclusive and secure ocean-front property with spectacular scenery. “This is a rare find anywhere in Asia and we are excited at the opportunities that this property will bring to GSH,” Ee added.

Sutera Harbour Resort group president Datuk Edward Ong Han Nam, the founder and developer of Sutera Harbour, said he was excited with the deal as it would propel the resort to the next level of tourism development in Sabah.

Sutera Harbour Location Map

GSH press release

]]>Someone with a lot of experience in the Asian consumer market sees something about Asia tourism growth and the potential of Kota Kinabalu. Kota Kinabalu&#8217;s attractive also lies in the fact that it sits within Asia&#8217;s emerging resort destination &#8216;Golden Triangle&#8217;. Will this move also generate more interest in the Kinabalu Gold Coast? The Star reports that one of Sabah’s premier resorts is changing hands after Singapore Exchange-listed GSH Corp Ltd has acquired a 77.5% stake in Sutera Harbour Group Sdn Bhd, the owner and operator of the Sutera Harbour Resort. GSH, through two of its wholly-owned subsidiaries Ocean View Ventures Pte Ltd and Ocean View Point Pte Ltd, is also acquiring two separate land parcels totalling nearly 10ha within the 154ha Sutera Harbour property for future luxury condominium development. GSH is a property development company with interests in China and Malaysia and is headed by Sam Goi, the executive chairman of Tee Yih Jia Group. Tee Yih Jia is a global food and beverage group with operations in Singapore, Malaysia, the United States, Europe and China. “Kota Kinabalu is a rising property hotspot in Malaysia and we see robust potential for prime real estate in the city, fuelled by strong tourism growth from South Korea, Japan, Hong Kong and China,” said GSH chief executive Gilbert Ee yesterday. “The number of visitors from these countries is growing exponentially and accounts for more than half of total international arrivals to Sabah, with more than a third of them from Hong Kong and China,” he said. “Apart from tourism, the Sabah has experienced strong gross domestic product growth in 2012, thanks to its key sectors of agriculture and oil and gas. With such strong fundamentals, we see great potential in Kota Kinabalu’s luxury hospitality sector as well as premier resort homes.” Ee added. He said Sutera Harbour and its surrounding properties were positioned to benefit from this growth. “Its location is within 10 minutes from the city and yet provides a quiet, exclusive and secure ocean-front property with spectacular scenery. “This is a rare find anywhere in Asia and we are excited at the opportunities that this property will bring to GSH,” Ee added. Sutera Harbour Resort group president Datuk Edward Ong Han Nam, the founder and developer of Sutera Harbour, said he was excited with the deal as it would propel the resort to the next level of tourism development in Sabah. Sutera Harbour Location Map GSH press release Image: Chrissy H You just finished reading Why did Sam Goi's GSH Corp buy Sutera Harbour?! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16666">Why did Sam Goi's GSH Corp buy Sutera Harbour?</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/sam-goi-gsh-corp-sutera-harbour/feed/05.9707222 116.0589600http://thedevelopmentadvisor.com/sam-goi-gsh-corp-sutera-harbour/What happens when hotel design competitive advantage is gone?http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/IWgEZY_jiDI/Resort DevelopmentAsia CoastalSat, 04 Jan 2014 03:07:21 PSThttp://thedevelopmentadvisor.com/?p=16641Pattaya Mail posted a very interesting article titled ‘Asia luxury hospitality think-tank contemplates designs for the future’. Re-produced below.

At some point every market-aware hotel developer and operator, for competitive reasons, will require a well designed hotel. When every hotel in your competitive segment is as good as you in every aspect, and returns afforded by design diminish, what happens next?

I would venture to say at that point the destination you are operating in better be well ‘designed’ or in other words well ‘planned’ and managed. A well designed hotel in Pattaya can be well designed in any destination anywhere in the world.

When the competitive advantage afforded by good hotel design is gone, how successful your hotel or resort will be then depends on how attractive the destination is overall.

Luxury, location and even a glamorous ‘name’ designer are no longer enough to assure a hotel or resort of success, according to a recent roundtable summit of some of Asia’s top hotel designers, branding experts, and senior hotel executives in Hong Kong.

Rather, time and space, as well as seamless and intelligent design concepts that flow through an entire property, a strong sense of place and an authentic flavour of the locale, community and culture are the new luxuries Asia’s growing army of discerning upscale travellers demand.

The roundtable’s convenor, BLINK Design Group creative director and founder Clint Nagata, said his firm was increasingly aiming to instill ‘a sense of timelessness’ in the designs carried out in key gateway cities and resorts in Asia for leading luxury brands like Conrad, Jumeirah, Hilton, Sheraton and Regent.

“A property really needs to pursue a sense of timelessness,” Mr. Nagata said. “It’s all well and good for older hotels to draw on the conventions of their past for a sense of luxury, but they need to be relevant to the here and now.

“It is important for design concepts to stand the test of time. Very often we see new hotels that are decent enough, but they will cease to be relevant in the next three to five years.”

The roundtable was convened during the recent HICAP (Hotel Investment Conference Asia Pacific), the region’s pre-eminent hotel investment conference held at the InterContinental Hong Kong, where for over two decades the who’s who of hospitality’s decision makers, movers and shakers and heavyweight pundits have gathered.

The BLINK roundtable on the future of luxury hospitality design is set to become an annual by-invitation-only event, after the inaugural session generated praise from its participants and saw frank and open debate on where luxury was heading in terms of Asian hotels.

BLINK Chief Marketing Officer Howard Wolff, as moderator, kicked off the roundtable discussion by challenging participants to quantify the value of good design.

“We know that design can have an impact on a hotel’s top and bottom line. Design is so integral to the success of a project that you can’t be profitable operating a poorly planned property. What I’m curious about is how hoteliers go about measuring these results,” said Mr Wolff.

C9 Hotelworks Managing Director Bill Barnett, one of Asia’s most respected pundits on luxury hospitality, suggested: “We can value (design) now with hotels’ branded residences in terms of market interest and sales.

“If you attach a brand to a project in a relatively unknown location, it instantly increases the sales pace and increases the value with a premium of about 30%,” Mr Barnett said. “In all honesty, in these instances, it’s more about the name of the designer regardless of whether the design is good or not.

Robert Hauck, President of Thanyapura and a long-time former Raffles hotelier, suggested that ‘wow’ design by big names was no longer a sure thing, and said there were other ways to build a hospitality brand.

“We operate a relatively small hotel, but we have managed to gain a lot of exposure and a lot of PR because the concept design of our property allows us to create and sell a story. A well-known design name attached to a property is not a USP anymore without a concept. It is the concept behind our design that is generating results, not the name of the designer.”

Thanyapura operates Asia’s first sports hotel as part of its 23ha active and healthy lifestyle destination on Phuket, which also comprises world-class sporting facilities, along with an integrative health and mind centre.

The Brand Company’s maverick CEO and founder James Stuart, who has been instrumental in creating some of Asia’s new luxury hotel brands including Langham Place, The Upper House and The Opposite House and who recently rebooted the branding for Thanyapura, said he hoped to spearhead a movement towards branding of hotels becoming a more holistic process that extends to architecture, design and human resources.

“If the head of marketing is responsible for the brand, it gives everyone else the chance to be irresponsible for the brand, whereas if the CEO is responsible, then every departmental manager has to adopt responsibility for the brand, particularly the HR department,” Mr Stuart said.

“Very often we hear people talking about ‘feel’ and ‘look’ – it isn’t just about layout but also about the right materials and textures used throughout, so the hotel doesn’t seem disjointed. This comes from ceasing to view a hotel as a place to sleep attached to this restaurant and that restaurant, and starting to take a step back and really asking ‘What is this place?’

“Too often hotels turn their previous successes into brand guidelines. For example, a successful project in Hong Kong will have qualities that draw inspiration from and directly reflect its locale. If you then take the branding of a successful property like this and try to transport that to another location like Phuket, Bali, or even Shanghai, you are going to end up with a property that feels out of place and at odds with its surroundings.”

]]>Pattaya Mail posted a very interesting article titled &#8216;Asia luxury hospitality think-tank contemplates designs for the future&#8217;. Re-produced below. At some point every market-aware hotel developer and operator, for competitive reasons, will require a well designed hotel. When every hotel in your competitive segment is as good as you in every aspect, and returns afforded by design diminish, what happens next? I would venture to say at that point the destination you are operating in better be well &#8216;designed&#8217; or in other words well &#8216;planned&#8217; and managed. A well designed hotel in Pattaya can be well designed in any destination anywhere in the world. When the competitive advantage afforded by good hotel design is gone, how successful your hotel or resort will be then depends on how attractive the destination is overall. &#160; Luxury, location and even a glamorous ‘name’ designer are no longer enough to assure a hotel or resort of success, according to a recent roundtable summit of some of Asia’s top hotel designers, branding experts, and senior hotel executives in Hong Kong. Rather, time and space, as well as seamless and intelligent design concepts that flow through an entire property, a strong sense of place and an authentic flavour of the locale, community and culture are the new luxuries Asia’s growing army of discerning upscale travellers demand. The roundtable’s convenor, BLINK Design Group creative director and founder Clint Nagata, said his firm was increasingly aiming to instill ‘a sense of timelessness’ in the designs carried out in key gateway cities and resorts in Asia for leading luxury brands like Conrad, Jumeirah, Hilton, Sheraton and Regent. “A property really needs to pursue a sense of timelessness,” Mr. Nagata said. “It’s all well and good for older hotels to draw on the conventions of their past for a sense of luxury, but they need to be relevant to the here and now. “It is important for design concepts to stand the test of time. Very often we see new hotels that are decent enough, but they will cease to be relevant in the next three to five years.” The roundtable was convened during the recent HICAP (Hotel Investment Conference Asia Pacific), the region’s pre-eminent hotel investment conference held at the InterContinental Hong Kong, where for over two decades the who’s who of hospitality’s decision makers, movers and shakers and heavyweight pundits have gathered. The BLINK roundtable on the future of luxury hospitality design is set to become an annual by-invitation-only event, after the inaugural session generated praise from its participants and saw frank and open debate on where luxury was heading in terms of Asian hotels. BLINK Chief Marketing Officer Howard Wolff, as moderator, kicked off the roundtable discussion by challenging participants to quantify the value of good design. “We know that design can have an impact on a hotel’s top and bottom line. Design is so integral to the success of a project that you can’t be profitable operating a poorly planned property. What I’m curious about is how hoteliers go about measuring these results,” said Mr Wolff. C9 Hotelworks Managing Director Bill Barnett, one of Asia’s most respected pundits on luxury hospitality, suggested: “We can value (design) now with hotels’ branded residences in terms of market interest and sales. “If you attach a brand to a project in a relatively unknown location, it instantly increases the sales pace and increases the value with a premium of about 30%,” Mr Barnett said. “In all honesty, in these instances, it’s more about the name of the designer regardless of whether the design is good or not. Robert Hauck, President of Thanyapura and a long-time former Raffles hotelier, suggested that ‘wow’ design by big names was no longer a sure thing, and said there were other ways to build a hospitality brand. “We operate a relatively small hotel, but we have managed to gain a lot of exposure and a lot of PR because the concept design of our property allows us to create and sell a story. A well-known design name attached to a property is not a USP anymore without a concept. It is the concept behind our design that is generating results, not the name of the designer.” Thanyapura operates Asia’s first sports hotel as part of its 23ha active and healthy lifestyle destination on Phuket, which also comprises world-class sporting facilities, along with an integrative health and mind centre. The Brand Company’s maverick CEO and founder James Stuart, who has been instrumental in creating some of Asia’s new luxury hotel brands including Langham Place, The Upper House and The Opposite House and who recently rebooted the branding for Thanyapura, said he hoped to spearhead a movement towards branding of hotels becoming a more holistic process that extends to architecture, design and human resources. “If the head of marketing is responsible for the brand, it gives everyone else the chance to be irresponsible for the brand, whereas if the CEO is responsible, then every departmental manager has to adopt responsibility for the brand, particularly the HR department,” Mr Stuart said. “Very often we hear people talking about ‘feel’ and ‘look’ &#8211; it isn’t just about layout but also about the right materials and textures used throughout, so the hotel doesn’t seem disjointed. This comes from ceasing to view a hotel as a place to sleep attached to this restaurant and that restaurant, and starting to take a step back and really asking ‘What is this place?’ “Too often hotels turn their previous successes into brand guidelines. For example, a successful project in Hong Kong will have qualities that draw inspiration from and directly reflect its locale. If you then take the branding of a successful property like this and try to transport that to another location like Phuket, Bali, or even Shanghai, you are going to end up with a property that feels out of place and at odds with its surroundings.” Image: Pattaya Mail You just finished reading What happens when hotel design competitive advantage is gone? ! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16641">What happens when hotel design competitive advantage is gone? </a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/hotel-design-competitive-advantage/feed/0http://thedevelopmentadvisor.com/hotel-design-competitive-advantage/Vietnam and Myanmar: Southeast Asia’s New Consumer Growthhttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/T7zf71P0WZM/Tourism DevelopmentMapAsia CoastalWed, 01 Jan 2014 18:20:07 PSThttp://thedevelopmentadvisor.com/?p=16578

Boston Consulting Group writes on Vietnam and Myanmar’s consumer growth. Several interesting charts re-produced from BCG. ‘MAC’ refers to ‘Middle and Affluent Class’.

You can find the bigger picture of Asia Pacific’s middle class growth here.

Asia a driving force in tourism

ITB World Travel Trends Report confirms Asia’s key role in global tourism –China the undisputed leader in a booming market.

This year Asia is once again among the major forces driving the international tourism market. This is one of the findings of the annual ITB World Travel Trends Report, conducted by IPK International and commissioned by the world’s leading travel trade show. According to its figures Asia posted impressive growth. The Chinese were particularly frequent travellers while the usually strong Japanese market experienced difficulties.In the international travel market China is now the world’s number one when it comes to travel spending. It ranks second for total trips and fourth for overnights.

Overall, during the first eight months of 2013 international departures from Asia increased by eight per cent. At 26 per cent, the Chinese contributed significantly towards this trend, whereas the Japanese travelled two per cent less. The forecasts for next year are similar. The Chinese market is expected to expand by around 18 per cent, while the Japanese market is predicted to remain stable. Overall, Asian source markets are expected to grow by around nine per cent in 2014.

This year’s increase in travellers consolidated China’s top placing in Asia. In 2012 Chinese citizens undertook around 45 million trips abroad and spent approximately 84.4 billion dollars. As a result the Chinese market was about twice the size of Japan’s. Other Asian markets appear small in comparison to China. Korea, Hong Kong, Australia, India and Indonesia followed in the rankings for total international trips.

Increasing Visitor Arrivals

This year’s figures for arrivals in Asia were equally positive. According to the World Tourism Organization (UNWTO), between January and August international arrivals grew by 6.3 per cent compared to 2012. Southeast Asia in particular experienced increased demand and reported 12 per cent growth. Visitor numbers arriving in southern Asia rose by six per cent. At four per cent, growth rates in the Pacific remained stable. Arrivals in northeast Asia rose by only three per cent, a three per cent drop compared to 2012.

Among Asian nations the Chinese were the most eager to travel. In 2013, stays exceeding four overnights rose by 28 per cent, while short trips increased by around 21 per cent. This sharp increase meant the Chinese were the world biggest spenders abroad, averaging 1,765 US dollars per trip. They travelled mainly for private reasons, with holiday trips rising by 30 per cent this year. Round trips were in demand, as were city breaks and beach holidays. At six per cent, the business travel market grew moderately compared to 2012.

Typically for a growth market, the Chinese travelled mainly within Asia, while long-haul trips to Europe and America took second place. The boom seems set to continue: experts predict the Chinese will be just as eager to travel in 2014. Around 44 per cent of the respondents from China said they aimed to travel more next year.

Fast-growing middle class

China’s positive market developments are mirrored by a demographic shift that is characterised by a fast-growing, wealthy middle class. Despite this, only seven per cent of Chinese citizens earn more than 15,000 dollars a year, in continuing contrast to nations such as Japan, South Korea and Taiwan.

Compared to China however, Japan’s performance was poor. International trips there fell by an overall two per cent, while overnights and spending dropped by three and six per cent respectively. The business travel market suffered worse than holiday trips and the lack of eagerness to travel hit Asian countries harder than long-haul destinations. Round trips, once a popular market segment, fell by around 20 per cent. However, this was largely offset by an increase in city breaks and beach holidays. Despite Japan’s economy being on the road to recovery very few of the respondents from Japan said they aimed to travel more abroad next year. Consequently, this market will probably stagnate in 2014.

Overall, forecasts predict a growing eagerness to travel over the next few years, due mainly to economic growth and an expanding middle class that is both educated and young. Furthermore, budget airlines such as Air Asia have made travelling abroad much easier and affordable. Commenting, Dr. Martin Buck, director of Travel and Logistics at Messe Berlin, said: “People from Asia expect the same standard of hospitality and service when they travel to destinations abroad. What is more, as well as group tours, which is the traditional form of travel, individual trips are now becoming more popular in Asia. European tour companies and hotels with a focus on travel business from Asia must tailor their services accordingly.“

]]>Via ITB: Asia a driving force in tourism ITB World Travel Trends Report confirms Asia’s key role in global tourism –China the undisputed leader in a booming market. This year Asia is once again among the major forces driving the international tourism market. This is one of the findings of the annual ITB World Travel Trends Report, conducted by IPK International and commissioned by the world’s leading travel trade show. According to its figures Asia posted impressive growth. The Chinese were particularly frequent travellers while the usually strong Japanese market experienced difficulties.In the international travel market China is now the world’s number one when it comes to travel spending. It ranks second for total trips and fourth for overnights. Overall, during the first eight months of 2013 international departures from Asia increased by eight per cent. At 26 per cent, the Chinese contributed significantly towards this trend, whereas the Japanese travelled two per cent less. The forecasts for next year are similar. The Chinese market is expected to expand by around 18 per cent, while the Japanese market is predicted to remain stable. Overall, Asian source markets are expected to grow by around nine per cent in 2014. This year’s increase in travellers consolidated China’s top placing in Asia. In 2012 Chinese citizens undertook around 45 million trips abroad and spent approximately 84.4 billion dollars. As a result the Chinese market was about twice the size of Japan’s. Other Asian markets appear small in comparison to China. Korea, Hong Kong, Australia, India and Indonesia followed in the rankings for total international trips. Increasing Visitor Arrivals This year’s figures for arrivals in Asia were equally positive. According to the World Tourism Organization (UNWTO), between January and August international arrivals grew by 6.3 per cent compared to 2012. Southeast Asia in particular experienced increased demand and reported 12 per cent growth. Visitor numbers arriving in southern Asia rose by six per cent. At four per cent, growth rates in the Pacific remained stable. Arrivals in northeast Asia rose by only three per cent, a three per cent drop compared to 2012. Among Asian nations the Chinese were the most eager to travel. In 2013, stays exceeding four overnights rose by 28 per cent, while short trips increased by around 21 per cent. This sharp increase meant the Chinese were the world biggest spenders abroad, averaging 1,765 US dollars per trip. They travelled mainly for private reasons, with holiday trips rising by 30 per cent this year. Round trips were in demand, as were city breaks and beach holidays. At six per cent, the business travel market grew moderately compared to 2012. Typically for a growth market, the Chinese travelled mainly within Asia, while long-haul trips to Europe and America took second place. The boom seems set to continue: experts predict the Chinese will be just as eager to travel in 2014. Around 44 per cent of the respondents from China said they aimed to travel more next year. Fast-growing middle class China’s positive market developments are mirrored by a demographic shift that is characterised by a fast-growing, wealthy middle class. Despite this, only seven per cent of Chinese citizens earn more than 15,000 dollars a year, in continuing contrast to nations such as Japan, South Korea and Taiwan. Compared to China however, Japan’s performance was poor. International trips there fell by an overall two per cent, while overnights and spending dropped by three and six per cent respectively. The business travel market suffered worse than holiday trips and the lack of eagerness to travel hit Asian countries harder than long-haul destinations. Round trips, once a popular market segment, fell by around 20 per cent. However, this was largely offset by an increase in city breaks and beach holidays. Despite Japan’s economy being on the road to recovery very few of the respondents from Japan said they aimed to travel more abroad next year. Consequently, this market will probably stagnate in 2014. Overall, forecasts predict a growing eagerness to travel over the next few years, due mainly to economic growth and an expanding middle class that is both educated and young. Furthermore, budget airlines such as Air Asia have made travelling abroad much easier and affordable. Commenting, Dr. Martin Buck, director of Travel and Logistics at Messe Berlin, said: “People from Asia expect the same standard of hospitality and service when they travel to destinations abroad. What is more, as well as group tours, which is the traditional form of travel, individual trips are now becoming more popular in Asia. European tour companies and hotels with a focus on travel business from Asia must tailor their services accordingly.“ You just finished reading ITB: Asia’s key role in global tourism! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16551">ITB: Asia’s key role in global tourism</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/itb-asia-key-role-global-tourism/feed/0http://thedevelopmentadvisor.com/itb-asia-key-role-global-tourism/Cambodia: Koh Tang resort land development projecthttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/kjSmzBRSTGY/Land DevelopmentAsia CoastalFri, 27 Dec 2013 19:00:08 PSThttp://thedevelopmentadvisor.com/?p=16536There’s definitely been a lot of coastal tourism development interest for Cambodia’s offshore islands. This includes Royal Group’s Koh Rong project as well as onshore locations like the Sun & Moon Gulf.

Location Map

]]>There&#8217;s definitely been a lot of coastal tourism development interest for Cambodia&#8217;s offshore islands. This includes Royal Group&#8217;s Koh Rong project as well as onshore locations like the Sun &#38; Moon Gulf. Came across the Koh Tang development via Constructing Cambodia. Its being developed by a company called Monarch Investment. Have a look at the weblinks. Location Map You just finished reading Cambodia: Koh Tang resort land development project! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16536">Cambodia: Koh Tang resort land development project</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/cambodia-koh-tang-resort-land-development/feed/010.3013935 103.1307831http://thedevelopmentadvisor.com/cambodia-koh-tang-resort-land-development/Project Development Cross Disciplinary Thinkinghttp://feedproxy.google.com/~r/thedevelopmentadvisor/~3/B2VEgq1wUFE/Development ManagementAsia CoastalTue, 24 Dec 2013 19:00:25 PSThttp://thedevelopmentadvisor.com/?p=15321

]]>&#160; The post Bridging the project development knowledge gap touched on the importance of cross disciplinary thinking for project development. Here educator and thinker Ken Robinson credits this approach and believes cross disciplinary thinking is necessary for organizational innovation. On organizational creativity begins from 5:0 minutes and after referring to organizational innovation and creativity at Cisco Systems: &#8220;What they deliberately do there is bring together cross disciplinary teams the whole emphasis is on collaboration . . . and this to me is important . . . creativity is about making connections about seeing relationships about opening up new possibilities and . . if you have an organization . . . where all the different disciplines are kept separate from each other . . . where people only talk within their own specialism its much less likely that you will get that spark of innovation that comes from people comparing and exchanging ideas across different fields of activity . . . the different disciplines so a big bit of it for me, of leading a culture of innovation, is to recognize that real creative thinking isn&#8217;t solo, its not an individual performance . . . but much more often innovation and creative thinking comes from people collaborating . . . from working in teams . . . and its one of the other ways by the way you get stifled in education because people are assessed as individuals rather than working collaboratively and if you really want that spark of creative culture it comes together from the mixing of people&#8217;s ideas.&#8221; You just finished reading Project Development Cross Disciplinary Thinking! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=15321">Project Development Cross Disciplinary Thinking</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/ken-robinson-project-development-cross-disciplinary-thinking/feed/0http://thedevelopmentadvisor.com/ken-robinson-project-development-cross-disciplinary-thinking/Will Asian pensions’ flow into resort real estate?http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/KE4hX9Tzjko/GeneralAsia CoastalSat, 21 Dec 2013 20:00:17 PSThttp://thedevelopmentadvisor.com/?p=16395Institutional Real Estate covered Asian pension fund’s gradual asset diversification out of fixed income and into real estate. As part of this move will we begin to see funds flowing into resort real estate?

Dr. Graeme Newell, a professor at the University of Western Sydney, has just completed the second tranche of a multi-staged research assignment commissioned by the Asia Pacific Real Estate Association on the “Significance of Real Estate in Asian Pension Fund Portfolios.”

The results of the first study completed in 2010 captured the mood of Asian pension funds and their need to start diversifying their portfolios away from their, at the time, decidedly fixed-income orientation. This year’s study focused on momentum — the considerable progress that has been made by some of Asia’s largest pension funds to actually begin that diversification process.

Typical global pension real estate allocation

Pension funds in general have become an increasingly important source of capital for the real estate markets. World pension assets now stand at more than $30 trillion, and for many large pension funds, real estate allocations typically are in the 5 percent to 10 percent range.

Who are the largest pensions in Asia?

Asian pension funds include five of the top 10, 10 of the top 50, and 29 of the top 300 largest pension funds in the world.

The largest of these is the Government Pension Investment Fund of Japan, with $1.292 trillion in assets under management. GPIF is the largest pension fund in the world today.

The second largest in the Asian region is the National Pension Service of South Korea, with $368 billion in assets. NPS is the fourth-largest pension fund in the world.

The Local Government Pension Plan of Japan is the third largest in the region, with $201 billion in assets. It is the world’s seventh-largest pension fund

The Central Provident Pension Fund of Singapore is the fourth largest in the region, with $188 billion in assets; it is the world’s eighth-largest pension fund.

The National Social Security System of China is the fifth largest in the region, with $177 billion in assets; it is the 10th-largest pension system in the world.

The sixth largest fund in the region — the Employees Provident Fund of Malaysia — is the world’s 12th-largest fund, with $176 billion in assets.

Conservative allocation & future liabilities

But many if not most of these Asian pension funds still have relatively conservative asset allocation mixes in their portfolios, with a decidedly undue over-concentration in fixed-income securities.

Because of the over-reliance on fixed-income securities in their portfolios, it will be incredibly difficult if not impossible for most of these funds to finance their future pension fund liabilities, particularly in light of today’s low interest rate environment.

The current asset mix of the GPIF of Japan includes 60 percent domestic bonds, 10 percent international bonds, 16 percent domestic stocks, 13 percent international stocks and 1 percent in short-term investments, with zero allocated to alternatives, which means, zero allocated to real estate.This kind of asset mix is typical for many Asia pension funds.

In contrast, South Korea’s NPS has 63 percent of its assets in domestic fixed-income securities, 5 percent in international bonds, 17 percent in domestic equity securities, 7 percent in international stocks and 8 percent in alternatives, including real estate. So while the NPS is much better diversified than funds such as the GPIF, it still has a very high exposure to the fixed-income markets.

The EPF of Malaysia has 55 percent of its assets in bonds, 38 percent in stocks, 4 percent in money market funds and the remaining 3 percent in real estate and infrastructure investments.

The $29 billion KWAP of Malaysia has 54 percent in domestic fixed income, 2 percent in international fixed income, 30 percent in domestic stocks, 2 percent in international stocks, 9 percent in money market funds and the remaining 3 percent in real estate.

The $19 billion GPF of Thailand has 62 percent in domestic fixed income, 10 percent in international fixed income, 8 percent in domestic stocks, 8 percent in international stocks, 1 percent in commodities and the remaining 11 percent in alternative assets, including real estate.

What’s driving re-allocation?

Pension reform is obviously needed in Asia, and in many regions, it is ongoing. The drivers of this reform:

Demographics (aging populations)

Urbanization (more workers covered by plans)

Costs and deficiencies in funding

Growing nature of future liabilities

Financial market and regulatory reforms

Changing asset allocations

Demographic forces — the aging of the population — is having a rapid and immense impact on policy decision making:

Today in China, there are 9 people working for every single individual in retirement; by 2050, there will be 3 people working for every single individual in retirement.

In Hong Kong, today there are 6; by 2050 there will be 2.

In India, today there are 13; by 2050 there will be 5.

In Japan, today there are 3; by 2050, there will be 1.

In Singapore, today there are 7; by 2050 there will be 2.

In South Korea, today there are 6; by 2050 there will be 2.

In Taiwan, today there are 7; by 2050 there will be 2.

In Thailand, today there are 9; by 2050 there will be 4.

In Malaysia, today there are 14; by 2050 there will be 4.

In the Philippines, today there are 14; by 2050 there will be 5.

In Indonesia, today there are 11; by 2050 there will be 4.

By way of contrast, in the OECD countries, today there are 4 people working for every retired person; by 2050 there will be 3.

How much additional funds available?

Collectively, the Asian pension funds surveyed in the study control in aggregate more than $792 billion in total assets under management, of which $30 billion, or roughly 3.8 percent, is invested in real estate.

Were the Asian pension funds sampled in the survey to increase their real estate allocations to the 5 percent to 10 percent range common among their Western pension fund peer group, it would create the potential for an additional $9.6 billion to $49.2 billion of additional real estate investments. Asian pension funds are growing at a relatively fast rate, so the amount of real estate investment potential these funds represent is considerably greater than that number.

]]>Institutional Real Estate covered Asian pension fund&#8217;s gradual asset diversification out of fixed income and into real estate. As part of this move will we begin to see funds flowing into resort real estate? Dr. Graeme Newell, a professor at the University of Western Sydney, has just completed the second tranche of a multi-staged research assignment commissioned by the Asia Pacific Real Estate Association on the “Significance of Real Estate in Asian Pension Fund Portfolios.” The results of the first study completed in 2010 captured the mood of Asian pension funds and their need to start diversifying their portfolios away from their, at the time, decidedly fixed-income orientation. This year’s study focused on momentum — the considerable progress that has been made by some of Asia’s largest pension funds to actually begin that diversification process. Typical global pension real estate allocation Pension funds in general have become an increasingly important source of capital for the real estate markets. World pension assets now stand at more than $30 trillion, and for many large pension funds, real estate allocations typically are in the 5 percent to 10 percent range. Who are the largest pensions in Asia? Asian pension funds include five of the top 10, 10 of the top 50, and 29 of the top 300 largest pension funds in the world. The largest of these is the Government Pension Investment Fund of Japan, with $1.292 trillion in assets under management. GPIF is the largest pension fund in the world today. The second largest in the Asian region is the National Pension Service of South Korea, with $368 billion in assets. NPS is the fourth-largest pension fund in the world. The Local Government Pension Plan of Japan is the third largest in the region, with $201 billion in assets. It is the world’s seventh-largest pension fund The Central Provident Pension Fund of Singapore is the fourth largest in the region, with $188 billion in assets; it is the world’s eighth-largest pension fund. The National Social Security System of China is the fifth largest in the region, with $177 billion in assets; it is the 10th-largest pension system in the world. The sixth largest fund in the region — the Employees Provident Fund of Malaysia — is the world’s 12th-largest fund, with $176 billion in assets. Conservative allocation &#38; future liabilities But many if not most of these Asian pension funds still have relatively conservative asset allocation mixes in their portfolios, with a decidedly undue over-concentration in fixed-income securities. Because of the over-reliance on fixed-income securities in their portfolios, it will be incredibly difficult if not impossible for most of these funds to finance their future pension fund liabilities, particularly in light of today’s low interest rate environment. The current asset mix of the GPIF of Japan includes 60 percent domestic bonds, 10 percent international bonds, 16 percent domestic stocks, 13 percent international stocks and 1 percent in short-term investments, with zero allocated to alternatives, which means, zero allocated to real estate.This kind of asset mix is typical for many Asia pension funds. In contrast, South Korea’s NPS has 63 percent of its assets in domestic fixed-income securities, 5 percent in international bonds, 17 percent in domestic equity securities, 7 percent in international stocks and 8 percent in alternatives, including real estate. So while the NPS is much better diversified than funds such as the GPIF, it still has a very high exposure to the fixed-income markets. The EPF of Malaysia has 55 percent of its assets in bonds, 38 percent in stocks, 4 percent in money market funds and the remaining 3 percent in real estate and infrastructure investments. The $29 billion KWAP of Malaysia has 54 percent in domestic fixed income, 2 percent in international fixed income, 30 percent in domestic stocks, 2 percent in international stocks, 9 percent in money market funds and the remaining 3 percent in real estate. The $19 billion GPF of Thailand has 62 percent in domestic fixed income, 10 percent in international fixed income, 8 percent in domestic stocks, 8 percent in international stocks, 1 percent in commodities and the remaining 11 percent in alternative assets, including real estate. What&#8217;s driving re-allocation? Pension reform is obviously needed in Asia, and in many regions, it is ongoing. The drivers of this reform: Demographics (aging populations) Urbanization (more workers covered by plans) Costs and deficiencies in funding Growing nature of future liabilities Financial market and regulatory reforms Changing asset allocations Demographic forces — the aging of the population — is having a rapid and immense impact on policy decision making: Today in China, there are 9 people working for every single individual in retirement; by 2050, there will be 3 people working for every single individual in retirement. In Hong Kong, today there are 6; by 2050 there will be 2. In India, today there are 13; by 2050 there will be 5. In Japan, today there are 3; by 2050, there will be 1. In Singapore, today there are 7; by 2050 there will be 2. In South Korea, today there are 6; by 2050 there will be 2. In Taiwan, today there are 7; by 2050 there will be 2. In Thailand, today there are 9; by 2050 there will be 4. In Malaysia, today there are 14; by 2050 there will be 4. In the Philippines, today there are 14; by 2050 there will be 5. In Indonesia, today there are 11; by 2050 there will be 4. By way of contrast, in the OECD countries, today there are 4 people working for every retired person; by 2050 there will be 3. How much additional funds available? Collectively, the Asian pension funds surveyed in the study control in aggregate more than $792 billion in total assets under management, of which $30 billion, or roughly 3.8 percent, is invested in real estate. Were the Asian pension funds sampled in the survey to increase their real estate allocations to the 5 percent to 10 percent range common among their Western pension fund peer group, it would create the potential for an additional $9.6 billion to $49.2 billion of additional real estate investments. Asian pension funds are growing at a relatively fast rate, so the amount of real estate investment potential these funds represent is considerably greater than that number. Implementation challenges The issues Asian pension fund investment executives face with respect to implementing their diversification plans, including real estate: Benefits Vehicles Investment manager selection Domestic versus international Overall view on real estate’s role in the portfolio Different strategic considerations for plans with larger versus smaller AUM Other challenges You just finished reading Will Asian pensions' flow into resort real estate?! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16395">Will Asian pensions' flow into resort real estate?</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/will-asian-pension-fund-flow-into-resort-real-estate/feed/0http://thedevelopmentadvisor.com/will-asian-pension-fund-flow-into-resort-real-estate/Why is CDL Hospitality Trust bullish on resort assets?http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/oU3RKSRSOZc/Resort DevelopmentAsia CoastalWed, 18 Dec 2013 20:00:14 PSThttp://thedevelopmentadvisor.com/?p=16423Jumeirah Dhevanafushi, Maldives

CDL Hospitality Trusts announced their acquisition of Jumeirah Dhevanafushi in the Maldives. See attachment below. Looking through their website reveals another property in the Maldives – the Angsana Velavaru. CDL acquired the Velavaru property in January 2013 and the Dhevanafushi property in December 2013.

So what’s CDL’s rationale for these resort acquisitions and venturing beyond city hotels?

Emerging market growth

From section 3.2: “In recent years, the rise in Asian visitors, particularly from China, has benefited the Maldives tourism sector with an overall increase in room demand despite some weakness in demand from its traditionally strong European source markets. Since 2010, China has become the first Asian market to gain the top position in terms of visitor arrivals into Maldives, with its market share increasing from 2.9% in 2005 to 15.0% for 2010 and now to 30.8% for the first ten months of 2013, growing by 45.8% compared to the corresponding period in 2012. Maldives’ fourth largest market, Russia, is a bright spot amongst the European source markets. Russia contributed 6.6% of overall tourist arrivals in the Maldives for the first ten months of 2013, registering a 16.6% growth on a year-on-year basis. Overall tourist arrivals recorded robust growth of 18.0% for the first ten months of 2013 on a year-on-year basis, and are expected to reach 1,290,000 by the end of 2014.”

Upside on development density

From section 3.5: “The regulations relating to the percentage of built up area for tourist facilities has been increased from 20.0% to 30.0% of total land area. The property’s current utilisation is approximately 17%, with potential for further capital enhancements including the development of additional villas.”

Acquisition of the Jumeirah Dhevanafushi

]]>CDL Hospitality Trusts announced their acquisition of Jumeirah Dhevanafushi in the Maldives. See attachment below. Looking through their website reveals another property in the Maldives &#8211; the Angsana Velavaru. CDL acquired the Velavaru property in January 2013 and the Dhevanafushi property in December 2013. Looking through the websites of two other Singapore publicly listed hospitality trusts &#8211; Ascendas Hospitality Trust and Far East Hospitality Trust &#8211; reveals that neither have pure resort assets. So what&#8217;s CDL&#8217;s rationale for these resort acquisitions and venturing beyond city hotels? Emerging market growth From section 3.2: &#8220;In recent years, the rise in Asian visitors, particularly from China, has benefited the Maldives tourism sector with an overall increase in room demand despite some weakness in demand from its traditionally strong European source markets. Since 2010, China has become the first Asian market to gain the top position in terms of visitor arrivals into Maldives, with its market share increasing from 2.9% in 2005 to 15.0% for 2010 and now to 30.8% for the first ten months of 2013, growing by 45.8% compared to the corresponding period in 2012. Maldives&#8217; fourth largest market, Russia, is a bright spot amongst the European source markets. Russia contributed 6.6% of overall tourist arrivals in the Maldives for the first ten months of 2013, registering a 16.6% growth on a year-on-year basis. Overall tourist arrivals recorded robust growth of 18.0% for the first ten months of 2013 on a year-on-year basis, and are expected to reach 1,290,000 by the end of 2014.&#8221; Upside on development density From section 3.5: &#8220;The regulations relating to the percentage of built up area for tourist facilities has been increased from 20.0% to 30.0% of total land area. The property&#8217;s current utilisation is approximately 17%, with potential for further capital enhancements including the development of additional villas.&#8221; &#160; Acquisition of the Jumeirah Dhevanafushi Image: Jumeirah You just finished reading Why is CDL Hospitality Trust bullish on resort assets?! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16423">Why is CDL Hospitality Trust bullish on resort assets?</a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/cdl-hospitality-trust-resort-assets/feed/0http://thedevelopmentadvisor.com/cdl-hospitality-trust-resort-assets/Cambodia: Why islands snapped up by developers and speculators?http://feedproxy.google.com/~r/thedevelopmentadvisor/~3/XEgJgAOUj2U/Land DevelopmentAsia CoastalSun, 15 Dec 2013 18:10:18 PSThttp://thedevelopmentadvisor.com/?p=16351Came across below Phnom Penh Post article from 2012.

In Demand and Supply of Asia’s Tourism Coastline we commented that Cambodia “has a very limited coastline (next shortest coastline after Singapore), a high land-mass-to-coastline (3rd highest) plus high population-to-coastline ratio (3rd highest). Cambodia also has the second highest position in terms of international-arrivals-to-coastline. Question is: will we witness an explosive growth in coastal tourism development as Cambodia develops and ramps up its international tourism marketing?”

The next question is, will Cambodia be executing its coastal development on a larger tourism strategy, thereby optimizing on scale and quality, or along a more conventional approach seen so far in the region?

Re-classification / Re-zoning of islands

More than 180,000 hectares on 28 of Cambodia’s 64 islands were reclassified as state private property for 31 companies seeking land concessions between 2008 and 2010, government sub-decrees reveal.

The reclassification sub-decrees, compiled by investigators at the rights group Adhoc, pave the way for firms to secure 99-year leases to develop hotels, resorts and casinos, mostly on islands dotted across the coasts of Preah Sihanouk, Kampot, Kep and Koh Kong province.

They include already popular destinations off Preah Sihanouk and Kep province such as:

Koh Tonsay (Rabbit Island)

Koh Russey (Bamboo Island)

Koh Rong

Koh Rong Somleom

Koh Takhieo as well as far more obscure enclaves.

Impact on public access

Experts in the investment and conservation communities have told the Post that on top of these land re-classifications, many of which have since gained final approval, plots have been earmarked for development by private firms on almost every single island in the Kingdom.

Adhoc senior investigator Chan Soveth said although this was good for a small number of individuals in the business community and rich foreign tourists, there were few island areas left for average Cambodians to enjoy their own country’s serene getaways.

“For example, can residents travel along Sokha beach?” he said, using the private, 1.5-kilometre shore at Sihanoukville reserved exclusively for hotel guests as an example of how the Kingdom’s islands could soon become off limits to most Cambodians.

EIA?

Soveth said there was a lack of vision and co-ordination from the government as it hastily divvied up Cambodia’s islands, reclassifying land for 99-year leases without assessing negative effects such as the depletion of forest resources that supported communities.

“We are concerned about development without transparency, and we don’t know what exists on those islands,” he said.

Connection

Seven of the sub-decrees reclassify land to firms that are not named, while two are simply referred to as “Chinese company”, a not uncommon practice in documents related to land concessions in Cambodia.

Some of the most audacious Cambodian island developments have been connected to shady individuals, including convicted pedophile Alexander Trofimov, who allegedly drove to his resort on Koh Pos from prison regularly before he was pardoned by the king last year.

Adhoc’s list of soon-to-be concessionaires includes a veritable who’s who of controversial development including LYP Group (Koh Kong Knong), TTY Corporation Co, Ltd (Koh Koan) and Try Pheap Company (Koh Tonsay), all firms that have been involved in major land disputes.

But Tourism Minister Thong Kong yesterday defended the aggressive island development plan, which was guided by the Cambodian Development Council, saying it would lead to jobs and prosperity for the local populations.

“If it affected villagers, for what would we be doing it? We have to make villagers get profit from those development projects,” he said.

Tobe Eastoe, protection adviser at Fauna and Flora International, said many companies had not even broken ground yet on their concessions, while some were developing on islands where 60 to 70 per cent of villagers depended on fishing for their primary income.

“Different types of development pose different threats to the marine environment. Some, such as those we have worked with, are interested in preserving natural beauty, as it is their primary tourist attraction,” Eastoe said. “Some are more interested in large-scale development.”

David George, Cambodia country manager at property investment firm CBRE, which has partnered with two of the biggest island development projects in Cambodia, said most firms developing Cambodia’s islands recognised it was in their own interest to do so responsibly.

“If you allow poor development on your island, it will affect the quality of your whole island,” George said.

Catching up with neighbors

He added that as Cambodia pushed to catch up with established markets in Thailand and Vietnam, it had the advantage of being able to learn from mistakes made in those countries.

“In a country where you have a relatively small number of people who have quite a lot of land, they have quite a lot of power [as to] how it’s developed,” George said.

With about 20 per cent year-on-year increases in tourist arrivals and the expected commencement of flights from Vietnam to Sihanoukville next year driving investment, Cambodia’s long-dormant island tourism industry had become nascent, he said.

Land speculation

But George and Thong agreed that a number of concessionaires who continued to idly sit on their leases – a strategy usually used to profit off land appreciation rather than follow agreed-upon development plans – remained a snag holding back tourist dollars from Cambodia’s beaches.

]]>Came across below Phnom Penh Post article from 2012. In Demand and Supply of Asia&#8217;s Tourism Coastline we commented that Cambodia &#8220;has a very limited coastline (next shortest coastline after Singapore), a high land-mass-to-coastline (3rd highest) plus high population-to-coastline ratio (3rd highest). Cambodia also has the second highest position in terms of international-arrivals-to-coastline. Question is: will we witness an explosive growth in coastal tourism development as Cambodia develops and ramps up its international tourism marketing?&#8221; This combination of limited coastline, limited number of offshore islands, Angkor Wat, more ideal weather, growing internal economy, emerging Asia middle class, is a potent mix for Cambodia&#8217;s coastal tourism development. It&#8217;s not surprising why investors snapped up Cambodia&#8217;s islands (while Indonesia goes looking for investors to develop its small islands). The next question is, will Cambodia be executing its coastal development on a larger tourism strategy, thereby optimizing on scale and quality, or along a more conventional approach seen so far in the region? &#160; Re-classification / Re-zoning of islands More than 180,000 hectares on 28 of Cambodia’s 64 islands were reclassified as state private property for 31 companies seeking land concessions between 2008 and 2010, government sub-decrees reveal. The reclassification sub-decrees, compiled by investigators at the rights group Adhoc, pave the way for firms to secure 99-year leases to develop hotels, resorts and casinos, mostly on islands dotted across the coasts of Preah Sihanouk, Kampot, Kep and Koh Kong province. They include already popular destinations off Preah Sihanouk and Kep province such as: Koh Tonsay (Rabbit Island) Koh Russey (Bamboo Island) Koh Rong Koh Rong Somleom Koh Takhieo as well as far more obscure enclaves. &#160; Impact on public access Experts in the investment and conservation communities have told the Post that on top of these land re-classifications, many of which have since gained final approval, plots have been earmarked for development by private firms on almost every single island in the Kingdom. Adhoc senior investigator Chan Soveth said although this was good for a small number of individuals in the business community and rich foreign tourists, there were few island areas left for average Cambodians to enjoy their own country’s serene getaways. “For example, can residents travel along Sokha beach?” he said, using the private, 1.5-kilometre shore at Sihanoukville reserved exclusively for hotel guests as an example of how the Kingdom’s islands could soon become off limits to most Cambodians. EIA? Soveth said there was a lack of vision and co-ordination from the government as it hastily divvied up Cambodia’s islands, reclassifying land for 99-year leases without assessing negative effects such as the depletion of forest resources that supported communities. “We are concerned about development without transparency, and we don’t know what exists on those islands,” he said. Connection Seven of the sub-decrees reclassify land to firms that are not named, while two are simply referred to as “Chinese company”, a not uncommon practice in documents related to land concessions in Cambodia. Some of the most audacious Cambodian island developments have been connected to shady individuals, including convicted pedophile Alexander Trofimov, who allegedly drove to his resort on Koh Pos from prison regularly before he was pardoned by the king last year. Adhoc’s list of soon-to-be concessionaires includes a veritable who’s who of controversial development including LYP Group (Koh Kong Knong), TTY Corporation Co, Ltd (Koh Koan) and Try Pheap Company (Koh Tonsay), all firms that have been involved in major land disputes. But Tourism Minister Thong Kong yesterday defended the aggressive island development plan, which was guided by the Cambodian Development Council, saying it would lead to jobs and prosperity for the local populations. “If it affected villagers, for what would we be doing it? We have to make villagers get profit from those development projects,” he said. Tobe Eastoe, protection adviser at Fauna and Flora International, said many companies had not even broken ground yet on their concessions, while some were developing on islands where 60 to 70 per cent of villagers depended on fishing for their primary income. “Different types of development pose different threats to the marine environment. Some, such as those we have worked with, are interested in preserving natural beauty, as it is their primary tourist attraction,” Eastoe said. “Some are more interested in large-scale development.” David George, Cambodia country manager at property investment firm CBRE, which has partnered with two of the biggest island development projects in Cambodia, said most firms developing Cambodia’s islands recognised it was in their own interest to do so responsibly. “If you allow poor development on your island, it will affect the quality of your whole island,” George said. Catching up with neighbors He added that as Cambodia pushed to catch up with established markets in Thailand and Vietnam, it had the advantage of being able to learn from mistakes made in those countries. “In a country where you have a relatively small number of people who have quite a lot of land, they have quite a lot of power [as to] how it’s developed,” George said. With about 20 per cent year-on-year increases in tourist arrivals and the expected commencement of flights from Vietnam to Sihanoukville next year driving investment, Cambodia’s long-dormant island tourism industry had become nascent, he said. As greater numbers of well-heeled tourists sojourned out to luxury island resorts, increasing trickle-down revenues would ensure that smaller-scale, locally owned onshore businesses benefited, George said. Land speculation But George and Thong agreed that a number of concessionaires who continued to idly sit on their leases – a strategy usually used to profit off land appreciation rather than follow agreed-upon development plans – remained a snag holding back tourist dollars from Cambodia’s beaches. &#160; You just finished reading Cambodia: Why islands snapped up by developers and speculators? ! Consider leaving a comment!And thank you for subscribing to TheDevelopmentAdvisor!<div class="tentblogger-rss-footer"><hr /><p>You just finished reading <a href="http://thedevelopmentadvisor.com/?p=16351">Cambodia: Why islands snapped up by developers and speculators? </a>! Consider leaving a comment!</p><p><p>And thank you for subscribing to <a href="http://thedevelopmentadvisor.com/" target="_blank">TheDevelopmentAdvisor</a>!</p></p></div>http://thedevelopmentadvisor.com/cambodia-offshore-islands-snapped-up-developers-speculators/feed/010.5762262 103.7857819http://thedevelopmentadvisor.com/cambodia-offshore-islands-snapped-up-developers-speculators/